Correct Answer: Option D

Explanation

Vertical integration is a strategy whereby a company owns or controls its suppliers, distributors, or retail locations to control its value or supply. The following are some of the reasons for vertical integration

• Reduce transportation costs if common ownership results in closer geographic proximity.
• Improve supply chain coordination.
• Provide more opportunities to differentiate by means of increased control over inputs.
• Capture upstream or downstream profit margins.

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