Advanced Business Strategy | Online Course Support

When a firm has made relationship-specific investments with a supplier, what IN PARTICULAR does the firm gain through vertical integration?

 
 
 
 
 
 

When a firm acquires a business in its own supply chain, that can create a vertical foreclosure. This near-monopoly position allows the firm to have residual rights of control and the ability to own and make decisions about assets crucial to the company.

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