Question

What was an effect of vertical integration?

Answer 1

Answer:

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Answer 2

Answer:

1. Positive differentiation can be created.

2. Asset investments can focus on specialization.

3. It can increase a brand’s local market share.

4. Transaction costs are lower throughout the supply chain.

5. Quality assurance can be built into the system.

6. It opens new markets.

7. Stability is created.

8. It forces a business to operate within an economy of scale.

9. It reduces flexibility.

10. Confusion is created easily and often.