Respuesta :
Moving one or more activities in the value chain outside of the company's control to other companies in the industry's value chain is known as strategic outsourcing.
Why do some businesses opt for methods other than vertical integration?
Outsourcing enables businesses to focus on their core competencies while simultaneously lowering labor costs and expenses. In practice, vertical integration is time-consuming and costly, and outsourcing can also give a company a competitive advantage. However, vertical integration offers many advantages.
Which kind of corporate diversification is most likely to result in improved performance?
In any case, related expansion, where the organization shares fundamental assets across its business portfolio (e.g., brand, innovation, and circulation channels), can prompt more significant levels of execution than can irrelevant broadening, because of the potential for improved productivity from utilizing shared.
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