Vertical integration provides:
A)Superior coordination and security
B)A larger margin
C)Increased power over rivals in the same industry
D)None of the above as necessity, only potentially, depends on the circumstances.

Question

Quizplus · Accepted Answer

Vertical integration can potentially provide superior coordination and security, a larger margin, and increased power over rivals in the same industry. However, it is not a necessity, and the benefits depend on the specific circumstances of the company and industry. Some companies may benefit from vertical integration, while others may not. Therefore, the best answer is D, as it acknowledges the potential benefits of vertical integration without stating they are necessary or guaranteed.

Vertical Integration Provides