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Disadvantages of backward integration? - Answers
Backward integration can lead to significant disadvantages, including increased operational complexity as companies take on additional responsibilities and processes outside their core competencies. It often requires substantial capital investment, which can strain financial resources and divert attention from other critical business areas. Additionally, there is a risk of reduced flexibility, as the company may become less responsive to market changes and shifts in consumer demand due to its commitment to certain suppliers or production processes.
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Disadvantages of backward integration? - Answers
Backward integration can lead to significant disadvantages, including increased operational complexity as companies take on additional responsibilities and processes outside their core competencies. It often requires substantial capital investment, which can strain financial resources and divert attention from other critical business areas. Additionally, there is a risk of reduced flexibility, as the company may become less responsive to market changes and shifts in consumer demand due to its commitment to certain suppliers or production processes.
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Disadvantages of backward integration? - Answers
Backward integration can lead to significant disadvantages, including increased operational complexity as companies take on additional responsibilities and processes outside their core competencies. It often requires substantial capital investment, which can strain financial resources and divert attention from other critical business areas. Additionally, there is a risk of reduced flexibility, as the company may become less responsive to market changes and shifts in consumer demand due to its commitment to certain suppliers or production processes.
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- og:descriptionBackward integration can lead to significant disadvantages, including increased operational complexity as companies take on additional responsibilities and processes outside their core competencies. It often requires substantial capital investment, which can strain financial resources and divert attention from other critical business areas. Additionally, there is a risk of reduced flexibility, as the company may become less responsive to market changes and shifts in consumer demand due to its commitment to certain suppliers or production processes.
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