Clearwater Electronics has purchased a mining company that supplies various rare-earth metals such as lanthanum, neodymium, and samarium that are used in the firm’s advanced

Clearwater Electronics has purchased a mining company that supplies various rare-earth metals such as lanthanum, neodymium, and samarium that are used in the firm’s advanced electronics manufacturing. Why is vertical integration an ideal business growth strategy for Clearwater Electronics?

1) Vertical integration will allow the company to supply materials to competitors at a higher price.
2) Vertical integration will allow the company to acquire more companies in the future if this acquisition is successful.
3) Vertical integration will allow the company to gain control over its value chain.
4) Vertical integration will allow the company to be more competitive in the computer chip market.