For a Backward Vertical Integration Strategy into the Business of Suppliers

Multiple Choice

For a backward vertical integration strategy into the business of suppliers to be viable and profitable, a company must possess

A) the capability to achieve the same scale economies as outside suppliers and also match or beat suppliers' production efficiency with no drop in quality.
B) considerable expertise in supply chain management, transportation logistics, and inventory control techniques.
C) large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components.
D) a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
E) excess production capacity so that it has an ample in-house ability to undertake additional production activities.