A strategic disadvantage of vertical integration is
A. to boost a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
B. to speed up the company's adoption of technological advances.
C. to impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
D. to require radically different skills and business capabilities than the firm possesses.
E. to impair a company's flexibility in accommodating shifting buyer preferences.
Answer: E
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