Question: What can be a potential risk for engaging in backward vertical integration? Expecting less retaliation from customers who got familiar with the company selling the
What can be a potential risk for engaging in backward vertical integration?
| Expecting less retaliation from customers who got familiar with the company selling the best products and services in the market | ||
| Expecting to become profitable due to the prior experience, for example a restaurant selling fried chicken who ends buying a pharmacy | ||
| Lacking business knowledge and skills, for example a farmer with 50 years of experience in planting trees and later becoming a furnisher retailer selling desks and chairs | ||
| Lacking business knowledge and skills, for example a furniture manufacturer buying a mine to reduce raw materials costs |
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