The potential advantages of Tesla’s backward vertical integration strategy includeMultiple Choice

• enhancement of Tesla’s differentiation capabilities and perhaps achieving a differentiation-based competitive advantage.
• increased business risk for Tesla because it can control a larger portion of the overall industry value chain.
• reduced costs.
• moderately increased risks to Tesla of disruptions in obtaining crucial components or support services.
• increased vulnerability to Tesla from powerful suppliers (who may be inclined to raise prices at every opportunity).

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