If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

Question

Quizplus · Accepted Answer

A horizontal integration strategy involves acquiring or merging with competitors, not suppliers. To address issues with suppliers, a firm might consider a vertical integration strategy, which involves acquiring or merging with suppliers to improve reliability and reduce costs.

If a Firm's Present Suppliers Are Expensive and Unreliable in Meeting