The Major Substitute for Vertical Integration Is

question 3

Multiple Choice

The major substitute for vertical integration is

• A) vertical disintegration.
• B) strategic alliances.
• C) a product-differentiation strategy.
• D) a low-cost strategy.

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Definitions:

Distinguishing Products

The process of identifying unique characteristics and benefits of products to differentiate them from competitors in the market.

Generic Strategies Model

The Generic Strategies Model is a framework developed by Michael Porter that outlines three strategies organizations can use to achieve competitive advantage: cost leadership, differentiation, and focus.

Focused Cost Leadership

A strategic approach where a company aims to be the lowest-cost producer in a particular niche or segment, offering prices lower than competitors while targeting specific customer groups.

Differentiation

In business, the process of making a product or service distinct from competitors in the market, often by emphasizing unique features or benefits.