Concepts/Application
February 6th, 2023
Vertical integration and bearing the cost has been tried many times since the 1990s. Why is the outlook more promising today than it has ever been?
Answer:
There could be several reasons why the outlook for vertical integration and bearing the cost is more promising today than in the past, including advancements in technology, changes in market conditions, and shifts in consumer behavior.
- Technology: With advancements in technology, the cost of producing goods and delivering services has decreased, making it easier and more cost-effective for companies to vertically integrate.
- Market conditions: Changes in market conditions, such as increased competition and globalization, may have made vertical integration a more attractive option for companies looking to increase efficiency and control costs.
- Consumer behavior: Shifts in consumer behavior, such as the growing preference for personalized and convenient products and services, may have created new opportunities for companies to vertically integrate and differentiate themselves from competitors.
In summary, the combination of technological advancements, changing market conditions, and evolving consumer behavior may have created a more favorable environment for vertical integration and cost-bearing strategies.
