Question

Pulse Corp., a vertically integrated company, is finding it difficult to adapt to current technology that is capable of speeding up its manufacturing process. The company is used to performing work in a specific manner using the old technology. However, in order to maintain competitive advantage, it has to upgrade itself to the current technology. This scenario is an example of ______ that is one of the disadvantages of vertical integration.

Answer 1

This scenario is an example of resistance to change, which is one of the disadvantages of vertical integration.

Step-by-step explanation:

This scenario is an example of resistance to change, which is one of the disadvantages of vertical integration in business.

Vertical integration is a method of growth where a company acquires other companies that include all aspects of a product's lifecycle. In this case, Pulse Corp. is finding it difficult to adapt to new technology because it is used to performing work in a specific way using the old technology.

By upgrading to the current technology, Pulse Corp. can maintain a competitive advantage and improve its manufacturing process, but it requires overcoming resistance to change.