Which of the Following Is NOT a Potential Advantage of Backward

Multiple Choice

Which of the following is NOT a potential advantage of backward vertical integration?

A) Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
B) Reduced risks of disruptions in obtaining crucial components or support services
C) Reduced costs
D) Reduced business risk because of controlling a bigger portion of the overall industry value chain
E) Increase in a company's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage