A strategy of vertical integration can have substantial drawbacks, including

Select one:

A$.$ loss of technological know$-$hont.

B$.$ the environmental costs of coordinating operations across vertical chain activities.

C$.$ raising the firm's capital investment in the industry and increasing business risk, as well as providing less flexibility in accommodating shifting buyer preferences by locking the firm into relying on its own in$-$house activities.

D$.$ "the difficulties faced in entering outside vertical and horizontal markets.

E$.$ whether horizontal integration can limit the performance of strategy$-$critical activities in ways that increase cost, build expertise, protect proprietary know$-$how, or increase differentiation.