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? Billing Network ? Design/build ? Operations/maintenance ? Resale/interconnection Retail Retail ? Network intelligence ? Value added services Wholesale service creation ? Network intelligence ? Value added services Network management/dispatch Wholesale PHARMACEUTICALS Research Development Trials Registration Manufac turing Sales marketing Increased development costs Role of blockbusters increasing Quality outsourcers available Easier coordination 1980s 1990s Research Development Trials Registration Manufac turing Sales marketing Academic labs Biotech firms Contract research anizations Contract mfrs PBMs JVs/ licensing ELECTRIC UTILITIES COMPUTER INDUSTRY ATT, MCI and Sprint … fragmented radically Microprocessors, integrated circuits, memory chips Computers Operating systems Applications software Marketing, sales, and distribution Common standards Time based petition 1995 Intel Motorola AMD Cyrix Compaq Dell Apple Packard Bell IBM DOS and Windows UNIX Mac OS OS/2 Microsoft Office WordPerfect Others Retail Superstores Online Mail order NeXt IBM , Digital 1997 Primary fuel Power generation Trading Distribution Backward integration to reduce risk Forward integration to open supply channels Scale through focusing on huge power plants Synergy through bundling capabilities of general trading and energy business New services for the customer Ruhrkohle Mobil BP Shell National Power (UK) Electrobel (Belgium) RWE (Germany) Norsk Kraftmeg