In the context of the three C\'s of vertical integration, which of the following
ID: 336055 • Letter: I
Question
In the context of the three C's of vertical integration, which of the following scenarios accurately depicts capabilities?
a. HDC Inc., an electronics company, decides, to effectively regulate its new technologies.
b. StyleRight LLC, an appareal company, manufacturers eco-friendly, organic, and sustainable clothes.
c. GoSpeed Corp., an automobile manufacturering company, evaluates itself by asking if it can perform the vertically integrated activity better than its rivals.
d. BagMoore Inc., a handbag company, decides to engage in backward integration and manufacture all of its products and accessories in the company house.
Explanation / Answer
The correct answer is option D: BagMoore Inc., a handbag company, decides to engage in backward integration and manufacture all of its products and accessories in the company house.
Under capabilities, the company aims to conduct the activity internally to develop better capabilities to perform it than other firms.