Fragmentation of Value Chains means hard work for vertically integrated companies as they have to routinely modularize individual parts of the Value Chain. This makes for example that the Make vs Buy question will have to be addressed in earnest.
The effort of making value chains more modular requires a good understanding of the part of the value chain under consideration, but especially about how this part fits into the overall value chain of the company and the sort of strategic contribution it makes to the overall output of the business. It is this understanding that allows Make vs Buy decisions – and many other value chain leverage strategies – to be taken in comfort.
