Which of the following is a danger for vertically-specialized companies?
A)They offer their best product at the lowest price.
B)They do not allow the firm to focus on making profits.
C)They have the flexibility to quickly make changes to the business model.
D)They go out of business if they cannot make enough profits.

Question

Quizplus · Accepted Answer

Vertically-specialized companies are at risk of going out of business if they cannot make enough profits because they are heavily reliant on a specific product, service or customer base. If something disrupts their supply chain or demand for their product decreases, they may not have the ability to diversify or pivot as easily as more horizontally-diversified companies.

Which of the Following Is a Danger for Vertically-Specialized Companies