Which of the Following Is Not a Strategic Disadvantage of Vertical

Multiple Choice

Which of the following is not a strategic disadvantage of vertical integration?

A) Vertical integration boosts a firm's capital investment in the industry,thus increasing business risk if the industry becomes unattractive later.
B) Integrating backward into parts and components manufacture can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) Vertical integration limits a company's ability to achieve greater product differentiation and to exercise direct control over the costs of performing value chain activities.
D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
E) Vertical integration poses all kinds of capacity-matching problems.