Industry Expert Blogs

Vertical integration, as I have noted in previous blogs, is the way to domination and maximum profitability. That is unless someone else has beaten you to the punch with an even better model. Apple is now executing a product and manufacturing supplier strategy that will force Samsung to lose lots of money and then ultimately split the Semiconductor Group from the larger Samsung Corporate Umbrella. Apple owns the Commanding Heights of the new Computer Ecosystem and has mapped out the more profitable Virtual Vertical Manufacturing Structure that allows it to invest just a portion of the CapEx that traditional suppliers require. Hence, they are growing in profitability at a greater rate than traditional vertically integrated companies. Samsung will need to split off its Semiconductor Unit soon or they will face even greater losses because they will be put in an untenable situation by Apple’s soon to be executed actions.

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