A firm's vertical integration strategy is rare when few competing firms are able to create value by vertically integrating in the same way.

Question

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When few competing firms are able to create value by vertically integrating in the same way, a firm's vertical integration strategy becomes rare. This is because vertical integration involves a company acquiring or establishing operations that are involved in the production or distribution of its products or services, and if there are few competitors who can do this effectively, then a company that can do it stands out as being unique in the marketplace.

A Firm's Vertical Integration Strategy Is Rare When Few Competing