What advantage does vertical integration offer to companies?

Vertical integration offers several strategic advantages, particularly in enhancing cost, quality, and delivery for companies. By integrating various stages of production or supply chain processes—whether through acquiring suppliers (backward integration) or distributors (forward integration)—companies can exert greater control over their operations.

This control improves cost management because the company can reduce reliance on external suppliers, which can involve variable pricing and potential inefficiencies. Additionally, with more direct oversight of the production processes, companies can ensure higher quality by setting and maintaining their quality standards across all integrated operations. Furthermore, vertical integration can lead to improved delivery times since the company can streamline operations and reduce delays associated with sourcing materials or products from third parties. Overall, these factors contribute to a more efficient and responsive supply chain, making vertical integration an advantageous strategy for many businesses.

The other options do not capture the full scope of vertical integration's benefits, particularly in aspects like quality and control over delivery processes. For instance, while it may eliminate the need for some suppliers, this is too narrow a viewpoint compared to the broader benefits of cost-effectiveness, quality assurance, and enhanced delivery capability.