Designing the Model of Selecting Vertical Integration Strategy in Iran Food Industry

It is impossible to develop and retain the Competitive advantage and gain success without Implementing strategy. The method of strategy selection is one of the most important challenges for the strategists. Different models have been formulated to enable managers to choose the appropriate strategies and some of these models are just formulated for the selection of vertical integration strategies, but available models have two limitations in terms of the low quantity of intended factors and the sole attention to the "degree of vertical integration". With respect to the limitations of previous models, our research, offers a new two-dimensional model" for selecting the appropriate vertical integration strategy. The horizontal axis of this model determines the attraction of previous stage in the firm's of chain activities and the vertical axis indicates that of the next stage in the chain.

This model suggests four strategies of vertical integration including backward vertical integration, Forward vertical integration, full vertical integration and out sourcing (Non-vertical integration). The proposed model, is a unique model that considers "Integration path" and enable strategists to contribute more than twenty factors in the process of selecting vertical integration strategy.