When technology in an industry is changing rapidly, a company pursuing a strategy of vertical integration may fmd itself:
A)locked into an old, inefficient technology.
B)able to sell its products at continually lower prices.
C)increasing returns on its assets.
D)establishing a monopoly in the industry.
E)lowering its cost structure.

Question

Quizplus · Accepted Answer

Pursuing a strategy of vertical integration means that the company is bringing activities in-house that were previously done by suppliers. However, if technology in the industry is changing rapidly, the company may find itself locked into an old, inefficient technology as it may not have the flexibility to quickly adopt new technology from suppliers. This can make it difficult to compete with companies that are able to quickly adopt the latest technology.

When Technology in an Industry Is Changing Rapidly, a Company