Chapter Eight Nine Sources of Value from Coordinating across Business Divisions
The previous chapter explained the difference between vertical value and horizontal value, and pointed out that the two sources of value are often intertwined within a particular corporate initiative. The chapter then gave examples of different types of vertical value and provided a way for managers to distinguish between mirages and real sources of vertical value.
In this chapter we give examples of types of horizontal value: ways in which headquarters creates value by encouraging coordination across divisions. For highly integrated companies, like Apple or CIW or Nokia, horizontal value is core to their corporate strategy. It is also completely intertwined ...
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