Under which of the following circumstances is vertical integration most likely to help a company establish itself as a differentiated player in its core business?
A)When backward vertical integration involves circumventing suppliers with the power to charge high prices
B)When vertical integration is based on a desire to avoid paying market middlemen
C)When vertical integration allows the company to establish for itself a stable supply of high-quality inputs
D)When vertical integration facilitates close coordination among adjacent stages of production,eliminating the need to hold excessive inventories
E)When vertical integration prohibits technologically complementary processes being carried out in quick succession

Question

Quizplus · Accepted Answer

Vertical integration allows a company to establish a stable supply of high-quality inputs, which can help differentiate it from competitors who rely on external suppliers that may have lower quality or unreliable supply chains. This can be especially valuable in industries where quality is a key differentiator.

Under Which of the Following Circumstances Is Vertical Integration Most