Explain cost savings and reduction in risks associated

Reference no: EM13175533

Samsung Electroincis and LG Electronics - two south korean digital product makers - recently announced plans to vertically integrate. According to industry sources, each firm is making the investments that are required to produce products such as cell phones and digital televisions in a self-sufficient manner. LG electronics plans to invest $30 million by 2010 to make this happen with the hope that the cost savings and reduction in risks associated with vertical integration justify the investment.

If you were a decision maker LG electronics would you have recommended vertical integration???

Reference no: EM13175533

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