What role does “uncertainty” play in vertical integration?

What role does “uncertainty” play in vertical integration?

Expert Solution

Uncertainty plays a major role in vertical integration where it can be considered as the the driving factor and when there is uncertainty over the outcomes of the the other members in the supply chain, what happens is that the company can feel it is difficult to continuously rely on the other members of the supply chain and decides to create its own group or combin with them the uncertainty is reduced and running of the firm is assured and in this waydue to uncertainty over the outcomes the firm will be motivated to vertically integrated with the members of the supply chain may be upstream aur downstream all in all

Rahul Sunny answered 2 years ago

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