What Are the Requirements for an Integration Strategy to Be

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The Answer is A successful integration strategy requires reconciliation of the trade-offs between differentiation and low cost.To effectively implement an integration strategy, the firm must be both efficient and flexible.For example, the integrator must balance centralization (to control costs)with decentralization (to foster creativity and innovation).Managers must, therefore, attempt to combine the advantages of the functional-structure variations used for cost leadership and differentiation while mitigating their disadvantages.Moreover, the integrator needs to develop several distinct core competencies to both drive up perceived value and lower cost.It must further pursue both product and process innovations in an attempt to reap economies of scale and scope.All of these challenges make it clear that although an integration strategy is attractive at first glance, it is quite difficult to implement given the range of important trade-offs that must be addressed.

What Are the Requirements for an Integration Strategy to Be

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