Samsung Electronics and Apple, Inc.: A Study in Contrast in Vertical Integration in the 21st Century
Raymond Allan G. Vergara

Samsung Electronics and Apple, Inc., two of the largest technology firms in today’s world, provides a new paradigm on how vertically integrated firms today operate. Technology has been changing how value chains and markets work, so much so that how vertically integrated structures are viewed today are changing, too. While both Samsung and Apple control much of their value chains, they, too, outsource some of the chains to other. This business model allows them to build on their proficiencies and, at the same time, to minimize transaction costs, which allows them to meet the demands of a very dynamic consumer electronics market.

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