Under which of the following circumstances is vertical integration considered hazardous?
A) When the demand for the product fluctuates frequently
B) When vertical integration involves moving downstream into retailing
C) When the value added by successive stages of production is declining
D) When the industries involved are undergoing rapid expansion
E) When the company's competitors are also following a strategy of vertical integration

Question

Quizplus · Accepted Answer

Vertical integration is hazardous when demand fluctuates frequently because it can lead to inefficiencies and increased costs due to the inability to quickly adapt to changes in demand.

Under Which of the Following Circumstances Is Vertical Integration Considered