Integrator

The Integrator business model entails a company controlling the majority, if not all, of the supply chain. Being involved in various stages of the production process, from raw material sourcing to manufacturing and distribution, for example. This level of control enables the company to maximize its range and efficiency. This approach eliminates delays caused by reliance on third-party suppliers, resulting in cost savings. Additionally, the firm should be able to lower transaction costs by customizing the value chain to the needs and processes of the industry. The company will benefit from increased efficiency in value creation (e.g., shorter transportation times or improved coordination of intermediate products) as well as faster response times to market changes. The disadvantage of integration is that the business cannot benefit from specialization, which can be accomplished through outsourcing specific tasks to specialized suppliers.

When and how to apply Integrator: 

This pattern entails a concentrated effort on the downstream value chain. Integration provides two distinct benefits: increased margins and a more complete understanding of the entire value chain. As customers continue to demand one-stop shopping, you may wish to follow 3M's lead and integrate multiple suppliers to create your offering. Bear in mind that success requires developing a broad knowledge base at the risk of losing depth and specialization. Well-known companies that use this pattern are Zara and Amazon Retail.

Integrator Icon

This Pattern is used by:

BMI BMI
Unlock

Unlock Premium Content

Get full access to 200+ Business Model Analyzes with Premium and discover the full scope!

Sign up for free Icon