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Suppose your upstream supplier becomes more profitable. Then: 1. you become more profitable by acquiring it 2. you become less profitable by acquiring it 3.

Suppose your upstream supplier becomes more profitable. Then:

1. you become more profitable by acquiring it

2. you become less profitable by acquiring it

3. acquiring it will make you more profitable as you can charge a higher price due to complementarity

4. acquiring it will make your firm more profitable only if there are synergies to exploit through the acquisition

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