Why is it advantageous for retailers to be vertically integrated?
A)Retailers have the greatest control over its supply chain.
B)Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer.
C)Retailers have realized that to stay competitive,they must become vertically integrated.
D)Customers prefer retailers who are vertically integrated.
E)There is no advantage to being vertically integrated.

Question

Quizplus · Accepted Answer

Being vertically integrated allows retailers to have control over their supply chain by owning and managing the different stages of production and distribution. This can lead to cost savings, quality control, and better responsiveness to changes in the market.

Answer: B 
 Being vertically integrated can also allow retailers to easily expand their services to the Internet since they can direct orders to the manufacturer. This can lead to faster delivery times, cost savings, and increased customer satisfaction.

Answer: C, D, and E 
 Choice C is debatable as not all retailers may see the need to become vertically integrated to stay competitive. Choice D may also not always be true as customers may not be aware or concerned about a retailer's vertical integration. Choice E is incorrect as being vertically integrated can provide various advantages.

Why Is It Advantageous for Retailers to Be Vertically Integrated