Which of the Following Is NOT a Potential Advantage of Backward

question 78

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

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