In which of the following situations is a firm sometimes ill-advised to vertically integrate an activity?
A) the firm's competence to perform the activity is high but the activity's strategic importance is low
B) the firm's control needs and relative competence to perform the activity are both high
C) the supplier refuses to accede to the firm's control needs
D) the activity is important to the firm and there are no alternatives to a weak supplier

Question

Quizplus · Accepted Answer

Vertical integration may not be advisable when a firm is competent in an activity that is of low strategic importance because it could divert resources from core activities that are more critical to competitive advantage.

In Which of the Following Situations Is a Firm Sometimes