Which of the following problems is (are)associated with a strategy of vertical integration?
A)An increasing cost structure
B)Manufacturing disadvantages that arise because of rapidly changing technology
C)Marketing disadvantages that arise when demand is unpredictable
D)All of these choices
E)None of these choices

Question

Quizplus · Accepted Answer

All of these problems are typically associated with a strategy of vertical integration. Vertical integration can lead to higher costs as the company takes on more functions in the value chain, which can make the cost structure less flexible. Additionally, manufacturing capabilities may become outdated quickly, leading to disadvantages in terms of technology. Finally, a lack of predictability in demand can make it difficult to forecast production needs and allocate resources efficiently, leading to marketing disadvantages.

Which of the Following Problems Is (Are)associated with a Strategy