Which of the following is not a potential gain from successful vertical integration?

Question

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Vertical integration refers to a company's expansion into different stages of production or distribution within its industry. Gains from vertical integration typically include creating barriers to entry for competitors, achieving greater efficiency through control over more of the supply chain, and reducing uncertainty by securing supplies or distribution channels. However, gains through final product diversification are not directly related to vertical integration. Diversification involves expanding into new products or markets to spread risk, which is a different strategic move than integrating vertically.

Which of the Following Is Not a Potential Gain from Successful