Question

An alternative to vertical integration that enables companies to obtain differentiation and cost savings without having to deal with the problems and costs associated with vertical integration is called __________.

Answer 1

The correct answer is letter "B": Cooperative relationships.

Step-by-step explanation:

Cooperative relationships are used by companies in a supply chain aiming to behave as a unified group to ease the transactions between manufacturers and end-consumers by offering above-average services at competitive rates. In cooperative relationships, small companies act on behalf of the manufacturer without the need to own the small businesses but being benefited fro the brand name of the producer.

Answer 2

Answer: Cooperative relationships

Explanation: Cooperative relationships allows companies to obtain differentiation and cost savings without dealing with the problems and costs associated with vertical integration. A co-operative relationship is when two or more parties work together towards a common goal with both benefiting from the relationship if it is successful. This means that they share the same objectives and act in a mutually beneficial manner. While a win-win relationship, it confers several advantages which include less taxation, reduced costs through service sharing and improve products and services etc.