How do firms benefit from vertical integration?
A) Vertical integration allows firms to reduce organizational complexity and administrative costs.
B) Firms that vertically integrate will have increased strategic flexibility when faced with technological changes.
C) Firms that vertically integrate do not have to make transaction-specific investments.
D) Vertical integration allows firms to increase operational efficiencies through improved coordination of adjacent value chain activities.

Question

Quizplus · Accepted Answer

Vertical integration allows firms to increase operational efficiencies through improved coordination and the fine-tuning of adjacent value chain activities. It facilitates scheduling and planning.

How Do Firms Benefit from Vertical Integration