The two most compelling reasons for a company to pursue vertical integration (either forward or backward) are to
A. broaden the firm's product line and/or avoid the need for outsourcing.
B. achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain greater ability to reduce internal operating costs.
C. expand into foreign markets and/or control more of the industry value chain.
D. strengthen the company's competitive position and/or boost its profitability.
E. enable use of offensive strategies and/or gain a first-mover advantage over rivals in revamping the industry value chain.
Answer: D
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