Vertical Integrators: Part II

While Vertical Integrators are technology companies, their business models should be the opposite of the Aggregator model that won the Internet era. They should look like the business models that won the Second Industrial Revolution.

Legacy Industrials , or Incumbents, have vertically integrated supply chains designed around older technologies and processes. Deep Tech companies have unproven technologies that, if they work, could be a very powerful building block for many businesses. Vertical Integrators integrate a number of cutting-edge-but-proven technologies; what they need... See more

The value chain for any given consumer market is divided into three parts: suppliers, distributors, and consumers/users. The best way to make outsize profits in any of these markets is to either gain a horizontal monopoly in one of the three parts or to integrate two of the parts such that you have a competitive advantage in delivering a vertical s... See more