What Are the Disadvantages of Vertical Integration

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The Answer is Control of overlapping input and output domains enhances an organization's competitive advantage in its core domain and creates new opportunities for value creation. But an organization also needs to look at the bureaucratic costs associated with owning its suppliers and distributors.
The more an organization pursues vertical integration the larger it becomes, and the bureaucratic costs associated with managing the strategy rise sharply because of communication and coordination problems and the simple fact that managers are expensive to employ. Too much vertical integration can be a strategic mistake.

What Are the Disadvantages of Vertical Integration

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