Vertical integration strategies _________.
A) extend a company's competitive and operating scope because its operations extend across more parts of the total industry value chain.
B) are one of the best strategic options for helping companies win the race for global market leadership.
C) are a cost-effective means of expanding a company's lineup of products and services.
D) are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries.
E) are a good strategy option for improving a company's supply chain management capabilities, pursuing efforts to remodel a company's value chain, achieving direct control over the costs of performing value chain activities, and gaining access to buyers.
A) extend a company's competitive and operating scope because its operations extend across more parts of the total industry value chain.
Vertical integration extends a firm's competitive and operating scope within the same industry. It involves expanding the firm's range of value chain activities backward into sources of supply and/or forward toward end users. A vertically integrated firm is one that performs value chain activities along more than one stage of an industry's overall value chain.
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