When technology in an industry is changing rapidly,a company pursuing a strategy of vertical integration may find itself
A) locked into an old, inefficient technology.
B) able to sell its products at continually lower prices.
C) increasing returns on its assets.
D) all of these choices.
E) none of these choices.

Question

Quizplus · Accepted Answer

Vertical integration involves owning and controlling multiple stages of a supply chain, from production to distribution. This can often lead to investment in fixed assets and technology specific to that supply chain. In a rapidly changing technological landscape, this can result in a company becoming locked-in to an older, possibly less efficient technology compared to competitors who have the flexibility to adopt new technologies or partner with more innovative suppliers. This can result in decreased competitiveness and potentially decreased returns on assets. Therefore, option A is the best choice as it is the most accurate reflection of the potential risks of pursuing a vertical integration strategy in a rapidly changing technological environment.

When Technology in an Industry Is Changing Rapidly,a Company Pursuing