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Instead, a better analogy for the mobile-phone industry's new structure would seem to be carmaking.Like handset-makers, carmakers used to be entirely vertically integrated.
"Our investors are almost entirely vertically integrated with every component in our supply chain," Harris said.
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They are all vertically integrated.
"Our service is completely vertically integrated," he said.
"The difference between those mentioned and ourselves is that we are completely vertically integrated in eSports.
GE, meanwhile, without a substantial cash payment, winds up with an entirely new, vertically integrated entertainment business that combines the NBC television network and the cable networks USA Network, Sci-Fi Channel, CNBC, MSNBC, Bravo and Trio with Universal Pictures, Universal Television, stakes in five theme parks and Spanish-language television broadcaster Telemundo.
But the pace and scope of technological innovation today has rendered vertically integrated companies almost entirely obsolete.
Years ago, all the computer companies were vertically integrated.
"These are vertically integrated systems that all grew up in silos," Garnick said.
For the first time, Smithfield was vertically integrated: They not only slaughtered the hogs; they raised them.
Sam Hamadeh, founder of PrivCo, a New York-based analysis firm, said: "Alibaba assiduously built its dominance by steadily acquiring complementary companies in areas such as payments, delivery logistics, and social media, to create an entirely vertically-integrated e-commerce powerhouse, the likes of which the West and the rest of the world have never seen".
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