Question

Suppose you are about to buy a used card. Explain the particular threats that go along with this purchase. What can you do to protect yourself from these threats? How is the process of purchasing a car similar and not similar to vertical integration decisions?

Answer 1

Purchasing a used car is a clear decision because of low investment and good for beginners to learn how to drive. Potential threats while purchasing to the used car like seller may sell accidental cars, old and very much used car, physical and inside conditions of cars, price seller quoted for a used car, after purchase investment on a used car, etc and threats must be analyzed with the help of experienced persons.

I will take the help of good experience person who has a good understanding about the car and with the help of person and my personal experienced analyzed the market rate of the same model cars and compare with seller car and work to understand that after-sales investment in car or car is ready to drive and analyzed the conditions of the car.

Vertical integration is when a company controls all the processes from production to supply chain and a market situation when the company extends its operation within the value chain. Stages of decision control by the purchaser while going to purchase a used car and all the operations related to purchasing a used car and bring it home and it's much similar to vertical integration.