The potential advantages of Tesla's backward vertical integration strategy include
A) increased vulnerability to Tesla from powerful suppliers (who may be inclined to raise prices at every opportunity) .
B) moderately increased risks to Tesla of disruptions in obtaining crucial components or support services.
C) reduced costs.
D) increased business risk for Tesla because it can control a larger portion of the overall industry value chain.
E) enhancement of Tesla's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage.
Correct Answer:
Verified
Q45: Outsourcing strategies
A)are nearly always a more attractive
Q46: Backward vertical integration can produce a
A)full integration
Q47: Vertical integration strategies
A)extend a company's competitive scope
Q48: A strategic disadvantage of vertical integration is
A)to
Q49: Bypassing regular wholesale/retail channels in favor of
Q51: The two most compelling reasons for a
Q52: The two big drivers of outsourcing are
A)an
Q53: A vertical integration strategy can expand the
Q54: For backward vertical integration into the business
Q55: The strategic impetus for Tesla's forward vertical
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents