Weighing the Cons and Pros of Vertical Integration

Question

Illustrates the Weighing the Cons and Pros of Vertical Integration?

Answer 1

Weighing the cons and pros of vertical integration:

A strategy of vertical integration can have both valuable weaknesses and strengths. The tip of the scales based on:

a. Whether vertical integration can enhance the performance of strategy-critical activities in manners that inferior cost, build expertise, or boost differentiation.

b. The collision of vertical integration on investments costs, response time and flexibility, and the administrative costs of coordinating operations across additional value chain activities.

c. Whether the integration substantially improves a company’s competitiveness.