Which of the Following Is NOT a Potential Advantage of Backward

question 33

Multiple Choice

Which of the following is NOT a potential advantage of backward vertical integration?

• A) reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
• B) reduced risks of disruptions in obtaining crucial components or support services
• C) reduced costs
• D) reduced business risk because of controlling a bigger portion of the overall industry value chain
• E) increase in a company's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage