Vertical integration, luxury handbag crocodile version

What would Oliver Williamson say?:

The economy may be hurting world wide, but those that love Hermes
are still buying. In fact, Hermes has resorted to breeding its own
crocodiles on farms in Australia to meet the demand for its exotic
bags. It is reported that Hermes makes around 3,000 crocodile bags
every year and demand continues to grow while the crocodiles are not
readily available to fill orders. It can take three to four crocodiles
to make one Hermes bag, so the move to use their own farms makes sense.

The pointer is from Bamber.


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