Final answer:
The CEO of Ecos Inc. believes that the firm has the resources to outperform its competitors by utilizing vertical integration in the real estate industry.
Step-by-step explanation:
The CEO of Ecos Inc. believes that their firm has the resources to outperform its competitors. In the context of reasons for vertical integration, this means that the CEO is referring to the firm's ability to control and integrate different stages of the real estate industry's value chain.
Vertical integration refers to the integration of multiple stages of production or distribution within a single company. By controlling multiple stages, a firm can streamline operations, reduce costs, and gain a competitive advantage over its competitors.
For example, Ecos Inc. can vertically integrate by not only developing and constructing properties but also by managing and selling them directly. This allows the firm to have more control over the entire real estate process and potentially outperform competitors who only specialize in one specific stage.