Research Paper: Ciba Vision and Planning Vertical Integration

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CIBA Vision

Problem-solution example 1: Clear Care shortage (2006)

Contact lens wearers demand consistency regarding the availability of their lenses. A delay in obtaining a new supply of lenses can be frustrating and ultimately cause a customer to discontinue the use of that particular product. In the past, there have been delays regarding the availability of Clear Care, a popular lens produced by CIBA Vision, due to supply chain problems. When Clear Care proved to be unavailable for inexplicable reasons, irate consumers bombarded CIBA Vision with emails, asking if the product had been discontinued.

Greater control over the production of its core products is essential for CIBA Vision. Introducing a system of vertical integration has been suggested as the solution to the types of issues that arose during the Clear Care shortage. Vertical integration allows an enterprise to expand upon its core competencies and to have greater control over the consistency of a product's supply. Given CIBA Vision's incorporation into a larger organization in the form of Alcon, there are greater financial and operational resources available for the contact lens company to expand its operations.

Two types of vertical integration exist, that of forward integration (an expansion of activities downstream in the production process) and backward integration (an expansion upstream) (Vertical integration, 2011, Net MBA). In the case of CIBA Vision, having greater control over the production of contact lenses (a backward movement) would have solved the Clear Care problem. As a result of the shortage, the company was forced to recommend to consumers that they buy a replacement product. This is problematic, as some consumers may then switch to the more easily-available replacement lenses on a permanent basis. In the future, CIBA must set a goal to minimize delays. In terms of its forward integration, it should also collaborate more effectively with issuers of prescriptions so that customers are informed in a timely fashion about any product shortages in the future. The company should also issue periodic updates on its website regarding the availability of its products.

Problem example 2: Miraflow product shortage -- Ebay availability: (2007)… [END OF PREVIEW]

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Cite This Research Paper:

APA Format

Ciba Vision and Planning Vertical Integration.  (2011, June 11).  Retrieved December 11, 2019, from

MLA Format

"Ciba Vision and Planning Vertical Integration."  11 June 2011.  Web.  11 December 2019. <>.

Chicago Format

"Ciba Vision and Planning Vertical Integration."  June 11, 2011.  Accessed December 11, 2019.