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 a viable and profitable,a company must possess

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