A firm should consider vertical integration when
A) the competitive situation is highly volatile.
B) customer needs are evolving.
C) the firm's suppliers willingly cooperate with the firm.
D) the firm's suppliers of raw materials are often unable to maintain quality standards.

Question

Quizplus · Accepted Answer

Vertical integration can be a strategic move for a firm when its suppliers are unreliable or unable to maintain quality standards, as it allows the firm to take control over its supply chain and ensure the quality of inputs.

A Firm Should Consider Vertical Integration When