For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company
A. must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality.
B. needs to have a wide product line, so it can supply parts and components for many products.
C. must have excess production capacity so that it has an ample in-house ability to undertake additional production activities.
D. must first be a proficient manufacturer.
E. should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
Answer: A
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