From our discussion of using the market vs. vertically integrating we learned that: Group of answer choices Firms should avoid outsourcing if they need to control the process. Firms should avoid outsourcing because there is a lack of incentives for suppliers to innovate or improve quality. Firms should avoid outsourcing if the firm is implementing a cost leadership strategy, since suppliers may not have the same drive to lower costs. Firms should avoid outsourcing if the firm is pursuing a differentiation strategy since suppliers are primarily interested in keeping costs as low as possible