Given a manufacturing company that is NOT vertically integrated. What advantage and disadvantage could there be for adding 1 additional level into vertical integration? (such as part of the supply chain or part of distribution) Please give 1 advantage and 1 disadvantage. Again here, consider how Information Systems could help.

Question

09-03-2020
Business

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Given a manufacturing company that is NOT vertically integrated. What advantage and disadvantage could there be for adding 1 additional level into vertical integration? (such as part of the supply chain or part of distribution) Please give 1 advantage and 1 disadvantage. Again here, consider how Information Systems could help.

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haseebkhuhro256 haseebkhuhro256 · Answer 1 · 2020-03-12T06:25:05+01:00

Answer:

Explanation:

vertical integration is type of expansion in business buy acquiring supplier or buyer in a supply chain. there are two types of integration

1.backward means entering into customers market by buying any customer business

2.forward means entering into suppliers market

Advantage of vertical integration

The manufacturing company will be able to control on its supply and will not face the problem of shortage of supply.

Disadvantage of vertical integration

The quality of goods might be poor and management may be inefficient because they are sure that their products will be purchased by its associated entity in supply chain.