Vertical integration may leads to the following evils/ disadvantages

Author Topic: Vertical integration may leads to the following evils/ disadvantages  (Read 500 times)

Offline Shah Alam Kabir Pramanik

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Vertical integration may leads to the following evils:

(i) It does not eliminate competition as in case of horizontal integrations.
(ii) The size of the business may grow and it may bring grow and it may bring inflexibility of operations.
(iii) Since its processes are interdependent, a slight interruption in one process may dislocate the entire production system.
(iv) It gives rise to concentration of economic power