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