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Shaw Industries, a Giant Carpet Manufacturer, Increases Its Control Over

Question 94

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Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process. This is an example of using


A) related diversification to acquire market power by pooling negotiating power.
B) related diversification to acquire economies of scope by leveraging core competencies.
C) related diversification to acquire economies of scope by integrating vertically in order to acquire market power.
D) related diversification to acquire market power by integrating vertically.

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