vertical disintegration

One major reason for vertical disintegration is to share risk.

Vertical disintegration is thus more likely when operating in volatile markets.

Vertical Disintegration refers to a specific organizational form of industrial production.

The brewers' various structural responses, which have included vertical disintegration as well as sales of tied estate, were due to be completed by November 1992.

He expects the trend toward specialization and vertical disintegration to continue as long as "markets continue to grow and globalization doesn't get sidetracked."

Some believe that Japan is neither Fordist nor post-Fordist and that vertical disintegration and mass production go hand in hand.

Others argue that the new, smaller firms in Italy didn't develop autonomously, but are a product of the vertical disintegration of the large Fordist firms who contracted lower value-added work to smaller enterprises.

As opposed to integration, in which production occurs within a singular organization, vertical disintegration means that various diseconomies of scale or scope have broken a production process into separate companies, each performing a limited subset of activities required to create a finished product.