Once a firm has vertically integrated it has committed its organizational structure, its management controls, and its compensation policies to a particular vertically integrated way of doing business and it has enhanced its flexibility.

Question

Quizplus · Accepted Answer

Vertical integration often reduces a firm's flexibility because it commits the firm to a specific supply chain structure and can make it harder to adapt to changes in the market or technology.

Once a Firm Has Vertically Integrated It Has Committed Its