A strategic disadvantage of vertical integration is
A) to boost a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
B) to impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) to impair a company's flexibility in accommodating shifting buyer preferences.
D) to require radically different skills and business capabilities than the firm possesses.
E) to speed up the company's adoption of technological advances.
Correct Answer:
Verified
Q43: A good example of vertical integration is
Q44: A strategy of vertical integration can have
Q45: Outsourcing strategies
A)are nearly always a more attractive
Q46: Backward vertical integration can produce a
A)full integration
Q47: Vertical integration strategies
A)extend a company's competitive scope
Q49: Bypassing regular wholesale/retail channels in favor of
Q50: The potential advantages of Tesla's backward vertical
Q51: The two most compelling reasons for a
Q52: The two big drivers of outsourcing are
A)an
Q53: A vertical integration strategy can expand the
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