Vertical integration by Zara, the main division and brand of the Spanish clothing firm Inditex, illustrates:

A. The downsides of vertical integration in managing different businesses
B. The potential for vertical integration to exploit technical economies from co-locating supply chain activities.
C. The potential for vertical integration to overcome problems arising from the need for transaction-specific investments by garment manufacturers.
D. The potential for vertical integration to help a firm respond to rapid changes in customer product preferences.

Question

05-06-2024
Business

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Vertical integration by Zara, the main division and brand of the Spanish clothing firm Inditex, illustrates:

A. The downsides of vertical integration in managing different businesses
B. The potential for vertical integration to exploit technical economies from co-locating supply chain activities.
C. The potential for vertical integration to overcome problems arising from the need for transaction-specific investments by garment manufacturers.
D. The potential for vertical integration to help a firm respond to rapid changes in customer product preferences.

Sagot :

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