Case ID: 4381
Solution ID: 18942
Words: 1367
Price $ 45

Bergerac Systems The Challenge of Backward Integration

Case Solution

Veterinary expenditure has been on an increasing trend due to the increase in pet ownership in the United States. Bergerac is a company producing equipment's used for testing pet patients in the veterinarian clinics. Omnivue is one of the most successful equipment's produced by the company, which is priced at a competitive rate to attract lower and middle sized veterinarians. The production of Omnivue involves the use of plastics and chemical reagents supplied by two major suppliers, GenieTech and Elsinore. The management of Bergerac is planning to take control over its suppliers to reduce the production fluctuation and overhead costs of the firm. There are three strategic alternatives for the company to implement its future plans. It can opt for forward integration strategy by controlling its distribution channels; it can implement backward integration strategy through acquisition of building its own plant. Bergerac also have the option to operate the way it is currently operating to avoid risks arising from forward and backward integration.

Excel Calculations

Questions Covered

Introduction and Problem Identification

Strategic Alternative 1- Forward Integration

Strategic Alternative 2- Backward Integration

Strategic Alternative 3- No Integration

Recommended Action Plan