The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace:
A) Outsourcing
B) Unrelated diversification
C) De-integration
D) Vertical integration

Question

Quizplus · Accepted Answer

The use of e-commerce is replacing vertical integration, which refers to the ownership of multiple stages of the production and distribution process. With e-commerce, firms can have tighter control over their inventories and supply chain management without the need to own every aspect of the process.

The Use of E-Commerce to Allow Firms to Reduce the Costs