Vertical integration disadvantages
What are the Vertical integration disadvantages?
Expert
Vertical integration has some substantial disadvantages are as follows:
a. It increases a firm’s assets investment in the industry.
b. Increasing business risk.
c. Perhaps rejecting financial resources to more worthwhile pursuits.
d. Locks a firm into relying on its personal in-house activities and sources of supply.
e. Poses capacity-matching difficulties.
f. Calls for radical alter in business and skills capabilities.
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