Which of the following is an example of a vertically-specialized company?
A)A company that contracts all of its activities to an external supplier
B)A company that participate in all stages of the industry value chain
C)A company that participates in only one activity of the industry value chain
D)A company that wants to grow by moving forward in the industry value chain

Question

Quizplus · Accepted Answer

A vertically-specialized company only participates in one activity of the industry value chain. Option A describes outsourcing or a virtual firm, B describes a vertically-integrated company that participates in all stages of the industry value chain, and D describes forward integration, which is not necessarily indicative of a vertically-specialized company.

Which of the Following Is an Example of a Vertically-Specialized