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The direction of any expansion. Should the company aim to direct ownership at the
upstream or downstream supply chain? The pharmaceuticals companies referred to
above have decided to buy into the downstream part of the supply network (downstream
vertical integration). This is sometimes referred to as an offensive strategic move since
it enables the company to increase its power with respect to customers. Alternatively, if
the pharmaceuticals company purchased other research labs this would be upstream‑
directed vertical integration which is strategically defensive.
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