Question

Vertical integration appears particularly advantageous when the organization has: Question 40 options: 1) a very specialized product. 2) a large market share. 3) a very common, undifferentiated product. 4) little experience operating an acquired vendor. 5) purchases that are a relatively small percent of sales.

Answer 1

2) a large market share.

Step-by-step explanation:

Horizontal consolidation can be defined as a strategic technique which typically involves the process of merging companies that are into the production (manufacturing) of the same or similar products (finished goods) and services into a single business unit. This type of merger or integration is the most commonly used consolidation method across the world. It is also known as horizontal integration and it essentially helps to increase the level of output (production) for businesses

Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.

Vertical integration appears particularly advantageous when the organization has a large market share i.e it controls a huge or enormous portion of a market.