Which of the Following Is NOT a Strategic Disadvantage of Vertical

question 82

Multiple Choice

Which of the following is NOT a strategic disadvantage of vertical integration?

• A) Vertical integration boosts a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
• B) Vertical integration backward into parts and components manufacturing can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
• C) Vertical integration reduces the opportunity for achieving greater product differentiation.
• D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
• E) Vertical integration poses all kinds of capacity-matching problems.

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Definitions:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and contribute to black-and-white vision.

Trichromatic Theory

The theory of color vision suggesting that three types of cones in the retina each make a maximal chemical response to one of three colors—blue, green, or red.

Color Sensitive Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision under bright light conditions.