The Best Reason for Investing Company Resources in Vertical Integration

Multiple Choice

The best reason for investing company resources in vertical integration (either forward or backward) is to

A) expand into foreign markets and/or control more of the industry value chain.
B) broaden the firm's product line and/or avoid the need for outsourcing.
C) gain a first-mover advantage over rivals in revamping the industry value chain.
D) add materially to a company's technological capabilities, strengthen the company's competitive position, and/or boost its profitability.
E) achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain a greater ability to reduce internal operating costs.