An integrator is in command of the bulk of the steps in a value-adding process. The control of all resources and capabilities in terms of value creation lies with the company. Efficiency gains, economies of scope, and lower dependencies from suppliers result in a decrease in costs and can increase the stability of value creation.
How they do it: For products directly sold by Amazon in its online store, Amazon controls the whole value chain starting from the point of finished manufacturing. Own branded items allow the company to determine price and availability in its store and also allow for preferred promotion of own-brand products with a potential higher margin.
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How they do it: Lufthansa’s product offering to passenger is the flight from location A to B. However, the company performs only the actual flight but not the process steps before and after such as baggage handling, airport service and maitenance etc.. This is usually performed by 3rd parties which are not paid by the customer though but paid for by Lufthansa.
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How they do it: Netflix’s core offering is providing the infrastructure and user interface for customers to watch content on the platform. The content in form of movies, shows etc. is usually not produced by Netflix (although they started producing their own shows and movies as well). As such Netflix can focus on the technical site of their platform as well as on user acquisition and license content from rights owners.
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How they do it: JCDecaux provides advertisers with the possibility to show their ads and organizes the infrastucture to present the ads on such as billboards and street furniture. However the manufacturing and design of the infrastructure is performed by 3rd party partners.
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How they do it: Unlike other apparel retailers, Zara does not outsource production of its garments to low-cost manufacturing countries, but operates a number of factories in Spain and other European countries to produce the majority of products in-house. Integrating the different steps in the value chain enables Zara to respond to fashion trends very quickly, in turn positioning them as a leader in the industry.
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