Thorntons: the vertically integrated retailer, questioning the strategy

Examines the strategic implications of a retailer engaging in the in‐house sourcing of its products (vertical integration). A contextual model for the make‐or‐buy decision is developed. Through the use of case material concerning a vertically integrated manufacturer/retailer, Thorntons, the article explores how the model might explain the pattern of vertical integration adopted by a specific organization and the strategy’s implications for competitiveness and strategic development. Problems are identified, including those of maintaining a retail focus, resource leverage and possible difficulties in responding to longer term market developments.