Integrator 23#
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.
Examples: Iconic Cases
How they do it: Standard Oil Company’s successful, but illegal, integrator strategy ultimately lead to its demise. In a landmark case, the U.S. Supreme Court dismantled it in 1911, as it was ruled to be an illegal monopoly. Standard Oil dominated the oil products market initially through horizontal integration in the refining sector, then, in later years vertical integration alongside the value chain, streamlining production and logistics, lowering costs, and undercutting competitors.
Learn more about Standard Oil Company →
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.
Learn more about Amazon Store →
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: 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.
Learn more about Netflix →
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.
Learn more about Lufthansa →
Below, the top industries for the pattern "Integrator" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
20% of firms using pattern
12% of firms using pattern
3% of firms using pattern
All Industries
Below, the pattern "Integrator" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
3 pattern co-occurrences
2 pattern co-occurrences
2 pattern co-occurrences