Question

To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)

Answer 1

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

• choose strategic outsourcing
• use taper integration

What is a vertical integration?

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

Missing options "

-choose strategic outsourcing

-use taper integration

-control every element of the industry value chain

-opt to become fully vertically integrated"

Read more about vertical integration

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