By integrating vertically, _____.

Question

By integrating vertically, _____.​

Quizplus · Accepted Answer

By integrating vertically, firms expand into stages of production earlier or later than those in which they specialize. Vertical integration is a strategy used by firms to acquire control over their supply chain to reduce costs, increase efficiency, and gain a competitive advantage. This can involve a firm expanding into stages of production earlier or later than their current specialty. For example, a car manufacturer might integrate backward by acquiring a tire manufacturing company, or integrate forward by acquiring a car dealership network.

By Integrating Vertically, _____.​

By Integrating Vertically, _____.