CIBA Vision Supply Chain Problems and Vertical Integration
This paper examines two supply chain disruptions experienced by CIBA Vision, a contact lens manufacturer. The first case involves a 2006 shortage of Clear Care lenses that left consumers without product and prompted frustration and fears of discontinuation. The second case covers a 2007 Miraflow shortage that drove prices from $6 to $30 on eBay. The paper analyzes how vertical integration — both backward and forward — offers a framework for addressing these failures, and discusses CIBA Vision's successful collaboration with supply chain company i2, which raised product availability to a target of 99.5% and reduced new product launch times by 50%.
- Introduction: Supply Chain Challenges at CIBA Vision: Why consistent product availability matters for CIBA
- Clear Care Shortage (2006): Backward Integration as a Solution: Clear Care shortage and vertical integration response
- Miraflow Shortage (2007): Partnership with i2 and Supply Chain Optimization: Miraflow price spike and i2 collaboration outcomes
- Recommendations for Future Supply Chain Management: Website tools and proactive consumer communication strategies
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What makes this paper effective
- Uses two concrete, real-world case examples to illustrate the same underlying problem — supply chain disruption — from different angles, making the analysis comparative and structured.
- Connects each problem directly to a theoretical framework (vertical integration) and applies both backward and forward integration concepts specifically to each scenario.
- Concludes each case with actionable, practical recommendations, grounding the analysis in realistic business strategy rather than abstract theory alone.
Key academic technique demonstrated
The paper demonstrates applied problem-solution analysis: each case is framed as a discrete business problem, followed by identification of a root cause, application of a relevant strategic concept (vertical integration), and concrete recommendations. This structure mirrors professional case study methodology and shows how theoretical frameworks are used to diagnose and resolve real operational failures.
Structure breakdown
The paper opens with a brief contextual introduction to why supply chain consistency matters in the contact lens industry. It then moves through two parallel case studies — Clear Care (2006) and Miraflow (2007) — each following a problem-then-solution format. The Miraflow section includes quantified outcomes from CIBA's i2 partnership. Both sections end with forward-looking recommendations. The paper concludes with a reference list in a loosely formatted citation style.
Introduction: Supply Chain Challenges at CIBA Vision
Contact lens wearers demand consistency regarding the availability of their lenses. A delay in obtaining a new supply of lenses can be frustrating and may ultimately cause a customer to discontinue use of that particular product. Supply chain disruptions have posed significant challenges for CIBA Vision, a leading contact lens manufacturer. Greater control over the production of its core products is therefore essential for the company. Introducing a system of vertical integration has been suggested as the solution to the types of supply issues CIBA Vision has experienced. 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 the larger organization of Alcon, greater financial and operational resources are available for the contact lens company to expand its operations.
Clear Care Shortage (2006): Backward Integration as a Solution
In 2006, there were significant delays regarding the availability of Clear Care, a popular lens solution produced by CIBA Vision, due to supply chain problems. When Clear Care proved unavailable for inexplicable reasons, irate consumers bombarded CIBA Vision with emails asking whether the product had been discontinued.
Two types of vertical integration exist: 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 lens solutions — a backward movement up the supply chain — would have prevented the Clear Care shortage. As a result of the disruption, the company was forced to recommend that consumers purchase a replacement product. This is problematic, as some consumers may permanently switch to the more readily available replacement, resulting in lost market share.
In the future, CIBA must set a clear goal of minimizing delays in product availability. In terms of forward integration, the company should also collaborate more effectively with prescription issuers so that customers are informed in a timely manner about any product shortages. The company should additionally issue periodic updates on its website regarding the availability of its products.
Miraflow Shortage (2007): Partnership with i2 and Supply Chain Optimization
A different type of supply chain problem emerged in 2007 regarding a shortage of Miraflow, another CIBA Vision product. Due to problems with the supplier, the product was unavailable through conventional pharmacies, and the cost of a bottle of Miraflow (20 mL) skyrocketed from $6.00 to $30.00 on eBay — an increase of 400%. This created a negative consumer perception of CIBA's products as unaffordable. The shortage also had the effect of deterring new customers from trying CIBA Vision products, due to the perception that they were unnecessarily expensive.
CIBA Vision took note of this problem and collaborated with i2, a supply chain management company, setting a goal of maintaining product availability at major retail establishments at 99.5%. Before this partnership, the product supply chain had been highly fragmented, resulting in shortages across many areas and causing prices to spike online. Collaborating with a single, dedicated supply chain partner allowed for a much higher level of product availability, meeting the stated 99.5% target. Through greater optimization and monitoring of inventory, the time required for new product launches was also reduced by 50%. This represents another example of effective backward vertical integration — gaining more effective control over the supply chain to the direct benefit of consumers.
References
Armour, L. Turning a blind eye from CIBA Vision. (2006). Retrieved on June 10, 2011, from http://lukearmour.com/2006/03/03/turning-a-blind-eye-from-CIBA-vision/
www.CIBAvision.com
I2 customer success story. (2008). Retrieved on June 10, 2011, from www.laurenbossers.writersresidence.com/system/.../CIBA_Vision_case_study.pdf
Vertical integration. (2011). Net MBA. Retrieved on June 10, 2011, from http://www.quickmba.com/strategy/vertical-integration/
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