October 2025 - Journal_FINAL_e - Flipbook - Page 13
Business
Consumers
Consumers
Consumers
Wholesale Packer/Retailer
Forward Integration
Adding margin by getting
closer to the customer.
Pig Producer
Other Proteins
Backward Integration
Other Business Ventures
Squeezing margin out of the
value chain.
Unrelated
Diversification
Related
Diversification
Developing new core
competencies for a
completely unrelated
business.
Leverage your core
competencies into a
different, but related
business.
Supplier
diversi昀椀cation generally requires more managerial
courage and 昀椀nancial stability than vertical integration
because you are swimming in a new lane as opposed
to deeper water.
Here are some questions you should answer as you
consider new opportunities:
1. Will your decision to integrate or diversify
improve your margins?
2. Will your decision to integrate or diversify reduce
your business risk?
3. Will your decision to integrate or diversify
improve your industry relevance? Is it a business
capability that others would want to own?
5. Are you 昀椀nancially prepared to operate through
the start-up phase of a decision to integrate or
diversify?
6. Do you currently have the expertise or experience
on your team or have ability to acquire the talent
to be successful?
7. Is your decision to integrate or diversify today
part of a larger plan?
As always, outside advice and perspective is extremely
helpful as you consider your opportunities to vertically
integrate or diversify. Build a network of people
you trust who have the appropriate experience
and expertise to help you critically evaluate your
opportunities and plan for a successful vertical
integration or diversi昀椀cation.
4. Will your decision to integrate or diversify allow
you to do it at scale now and into the foreseeable
future?
FALL 2025 | 13
