alleryStart learning →Which is a benefit of horizontal integration?
AEconomies of scale
BLower market share
CDependence on one supplier
DReduced product range
Answer & Solution
Correct answer: A. Economies of scale
Combining output at one stage spreads fixed costs and improves scale economies.
Keep practising Strategic Choices
Browse all Strategic Choices questions for CA Inter, or explore more Strategic Management topics.
Related questions
Differentiation relies on resources that rivals find:Companies cooperating unofficially to control prices form a:Which tasks are typically outsourced?Paying for the right to use another firm's technology is:Which arrangement grants a brand name and concept to a paying operator?A horizontal strategic alliance links firms that are:Unlike a joint venture, a strategic alliance does not:Partners in a strategic alliance generally remain: