Throwback Brewery, a New Hampshire$-$based craft beer and hospitality business located on a $12-$acre working farm, is considering a backward vertical integration strategy into supplying its own hops for brewing beer, as hops is one of the major cost components for brewing craft beer. For this action to be viable and profitable, Throwback Brewery must possess

Multiple Choice

large state$-$of$-$the$-$art growing and production facilities so that it can fully capture all economies of scale in producing parts and components.

the capability to achieve the same scale economies as outside suppliers of hops and also match or beat suppliers$$ production efficiency with no drop in quality.

considerable expertise in supply chain management, transportation logistics$,$ and inventory control techniques.

a distinctive competence in hops growing and production process technology and at least a core competence in R&D to develop new strains of hops.

excess production capacity so that it has an ample in$-$house ability to undertake additional production activities.