For a backward vertical integration strategy into the business of suppliers to be a viable and profitable,a company must possess
A) a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
B) large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components.
C) considerable expertise in supply chain management,transportation logistics,and inventory control techniques.
D) the capability to achieve the same scale economies as outside suppliers and also match or beat suppliers' production efficiency with no drop in quality.
E) all kinds of capacity-matching skills and capabilities.
Correct Answer:
Verified
Q49: Experience indicates that strategic alliances
A)are generally successful.
B)work
Q50: Entering into strategic alliances and collaborative partnerships
Q51: Bypassing regular sales channels in favor of
Q52: The big risk of employing an outsourcing
Q53: The strategic impetus for forward vertical integration
Q55: Which of the following is not a
Q56: Among the principal advantages of strategic alliances
Q57: Backward integration involves
A)performing industry value chain activities
Q58: Which of the following is not a
Q59: The two big drivers of outsourcing are
A)a
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