Pulse Corp., a vertically integrated company, is finding it difficult to adapt to current technology that is capable of speeding up its manufacturing process. The company is used to performing work in a specific manner using the old technology. However, in order to maintain competitive advantage, it has to upgrade itself to the current technology. This scenario is an example of __________ that is one of the disadvantages of vertical integration.
A)loss of frequency
B)loss of focus
C)loss of flexibility
D)loss of facility

Question

Quizplus · Accepted Answer

Loss of flexibility is one of the disadvantages of vertical integration. This means that the company may find it difficult to adapt to changes in technology or market conditions, as it is used to its established way of doing things. In this scenario, Pulse Corp. is struggling to upgrade to the new technology, which is causing problems in maintaining its competitive advantage.