Question

Which of the following is NOT a condition that favors the success of vertical integration?

a. availability of capital
b. availability of managerial talent
c. sufficiently high demand
d. small market share
e. All of these favor the success of vertical integration.

Answer 1

d. small market share

Step-by-step explanation:

Vetical integration is usually done to gain more market share and economies of operations and to win over competitors. If the vertical integration has less market share the company may not expand much and attain benefits.