Independent suppliers and customers may be unwilling to do business with a vertically integrated firm, because:
A)They believe that the firm cannot excel at all stages of the value chain
B)They may now view the firm as a direct competitor
C)They would see the firm as a producer of complementary products
D)They do not like large integrated firms

Question

Quizplus · Accepted Answer

Independent suppliers and customers may view a vertically integrated firm as a direct competitor, as the firm now controls multiple stages of the value chain, including the production of inputs and the sale of final products. This could result in a loss of trust and reluctance to do business with the firm.

Independent Suppliers and Customers May Be Unwilling to Do Business