A01 chaf6542 06 se fm indd

Virtual integration and outsourcing 

of core processes

‘The success of companies such as Dell 

in outsourcing core business processes 

and in virtual integration suggests that 

all companies need to adopt this model 

in order to be competitive.’

Debate 6.2

Activity 6.2

Supply chain models in personal computer manufacture

Activity

1 

Review the approaches of the two companies illustrated below. Which tends to 

 vertical integration and which tends to virtual integration?

2 

Produce a table summarising the benefits and disadvantages of each approach. 

Which do you think is the better approach?

3 

How can information systems facilitate each approach?