International Standardization and Information- Communication Industries

Most industries are trying to change their structures from vertical integration to horizontal specialization. This is because of the presence of international standardization that one specific product of company A can be compatible with other products of other companies. This method, I think, can broaden their market because when integrated with other products, the inferior product can be sold on the market. Still, there are some companies still vertically integrated especially automobile because all components have to be well fit in one set to ensure the low probability of danger, and it is also the whole responsibility of the firm if thing goes wrong. Other companies, in particular in Japan, still preserve the vertical integration structure because they want to keep Japanese practices " lifetime employment" and "seniority-based wages" to build employee skill and loyalty. Though human beings are equal, but they are different. Hence, different skills are applied to different people.

Besides, another term to think about horizontal integration. Horizontal specialization is focusing on only one product by improving its quality control (QC), and try to make its product standardized, while horizontal integration is trying to extent its products to some extent to meet users' satisfaction based on what have already done.

These are what I have learnt today :-)