Vertical integration can lower costs by:

Question

Quizplus · Accepted Answer

By vertically integrating, companies can coordinate their production flows more effectively and avoid delays or bottlenecks that could otherwise drive up costs. This can help to streamline operations and make the overall process more efficient. While expanding supplier power, establishing a framework for operations, and creating control factors are all potential benefits of vertical integration, they may not necessarily lead to lowered costs. Accommodating shifting buyer preferences is also important, but not directly related to cost reduction.

Vertical Integration Can Lower Costs By