Which of the following is NOT a strategic disadvantage of vertical integration?
A) Vertical integration boosts a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
B) Vertical integration backward into parts and components manufacturing can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) Vertical integration reduces the opportunity for achieving greater product differentiation.
D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
E) Vertical integration poses all kinds of capacity-matching problems.
Correct Answer:
Verified
Q43: A good example of vertical integration is
Q45: Outsourcing strategies
A)are nearly always a more attractive
Q47: Vertical integration strategies
A)extend a company's competitive scope
Q51: The two most compelling reasons for a
Q52: The two big drivers of outsourcing are
A)an
Q54: Vertical integration strategies do not aim at
A)
Q54: For backward vertical integration into the business
Q56: The best reason for investing company resources
Q58: An outsourcing strategy
A)is nearly always a more
Q60: Which of the following is NOT a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents