Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Shah Alam Kabir Pramanik on April 03, 2017, 04:39:39 PM

Title: Vertical integration may leads to the following evils/ disadvantages
Post by: Shah Alam Kabir Pramanik on April 03, 2017, 04:39:39 PM
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