Which of the following is NOT a potential advantage of backward vertical integration?
A) Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity) .
B) Reduced risks of disruptions in obtaining crucial components or support services.
C) Reduced costs.
D) Reduced business risk because of controlling a bigger portion of the overall industry value chain.
E) Adding to a company's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage.
Correct Answer:
Verified
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