The best reason for investing company resources in vertical integration (either forward or backward) is to
A. add materially to a company's technological capabilities, strengthen the company's competitive position, and/or boost its profitability.
B. expand into foreign markets and/or control more of the industry value chain.
C. achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain a greater ability to reduce internal operating costs.
D. gain a first-mover advantage over rivals in revamping the industry value chain.
E. broaden the firm's product line and/or avoid the need for outsourcing.
Answer: A
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