Which of the following statements regarding direct duplication and substitutes for vertical integration is accurate?
A) A firm's valuable and rare vertical integration choices may be subject to direct duplication and substitutes.
B) A firm's valuable and rare vertical integration choices are subject to neither direct duplication nor substitutes.
C) A firm's valuable and rare vertical integration choices may be subject to direct duplication but not to substitutes.
D) A firm's valuable and rare vertical integration choices may be subject to substitutes but not to direct duplication.

Question

Quizplus · Accepted Answer

Direct duplication occurs when other firms imitate a firm's successful features or operations, and substitutes for vertical integration refer to alternative ways to achieve the same objectives as vertical integration. Therefore, it is accurate to say that a firm's valuable and rare vertical integration choices may be subject to both direct duplication and substitutes, as competitors can replicate their operations or find alternative ways to achieve the same benefits.

Which of the Following Statements Regarding Direct Duplication and Substitutes