Abstract

Vertical integration and more generally, corporate-level strategy, are rather difficult for students to grasp, being such abstract concepts. This exercise provides a way for participants to experience issues leading to market failure (and vertical integration) by engaging them as buyers and sellers of a component for very unique car—a limousine with square tires. Suppliers for square tires are solicited, followed by post-contract renegotiation. The ensuing frustration and heated interactions are leveraged to explain the concepts of asset specificity and uncertainty, causing elevated risk, leading to lack of suppliers and buyers, and forcing firms to become their own suppliers.

摘要

纵向整合以及更普遍的企业层面的战略，对于学生来说是相当抽象的概念，很难掌握。该练习为参与者提供了一种体验导致市场失灵（和垂直整合）问题的方式，让他们成为非常独特汽车（带有方形轮胎的豪华轿车）的组件的买家和卖家。征集方形轮胎的供应商，然后进行合同后重新谈判。随之而来的挫败感和激烈的互动被用来解释资产特异性和不确定性的概念，导致风险升高，导致缺乏供应商和买家，并迫使企业成为自己的供应商。