Ford vertical integration 2013 Article Example | Topics and Well Written Essays - 250 words

Ford vertical integration 2013 - Article Example The California based Automakers feels that it is an inevitable necessity for the company to supply its own batteries if it has to remain on track with its much aggressive long-term strategic objectives. Mr. Musk told the analysts about the company’s ambitious plans of selling approximately 500000 units annually when it begins selling Generation III cars (White, 2013). However their biggest concern was lack of steady supply of batteries which could meet this demand. There is no doubt that Mr. Musk’s idea emulates the one time vertical integration idea of Henry Ford which saw the birth of Ford Rouge factory complex which ensured steady supply of steal which was one of the raw materials for the giant automaker in the 20th century. White (2013) assert that Despites its current ebb state the Rouge complex has been instrumental to the company for several years. If Telsa will realize its dream of backward vertical integration whereby it could convert raw materials into finished battery packs for its automobiles then the company will be in a position to compete effectively through cost control and scheduled production. White, J. (2013). An Idea Henry Ford Would Be Proud Of: Tesla’s ‘Giga Factory’. The Wall Street Journal. Retrieved December 11, 2013 from: