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

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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