The Two Best Reasons for Investing Company Resources in Vertical

Multiple Choice

The two best reasons for investing company resources in vertical integration (either forward or backward) are 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) 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 greater ability to reduce internal operating costs.