A potential downside of a vertical integration strategy is:

A potential downside of a vertical integration strategy is:

Decreased supply chain control

Increased supply chain transaction costs

The risk of relying on one industry outcome

All of te above

Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.