Vertical Integration and Outsourcing Web精选.pdfVIP

Vertical Integration and Outsourcing C H A P T E R 1 9 C H A P T E R O U T L I N E Vertical Chain of Production Benefits of Buying in Competitive Markets Reasons for Nonmarket Transactions Contracting Costs Market Power Taxes and Regulation Other Considerations Vertical Integration versus Long-Term Contracts Incomplete Contracting Ownership and Investment Incentives Specific Assets and Vertical Integration Asset Ownership Other Reasons Continuum of Choice Contract Length Contracting with Distributors Free-Rider Problems Double Markups Regulatory Issues Recent Trends in Outsourcing Summary Appendix: Ownership Rights and Investment Incentives 600 Part 4 Applications of Organizational Architecture n 1989, Eastman Kodak sold its mainframe computers to IBM and contracted with IBM to do much of Kodak’s data processing for the next 10 years.1 Under the con- tract with Kodak, IBM was responsible for operating Kodak’s data center. IBM pro- I vided the operating software and hardware and was responsible for backups and file protection. Kodak retained its own staff for developing applications software and was responsible for mo