Asset specialty makes it difficult to exchange for other purpose. It's value for later use will be very limited. The risk involved is high.

Vertical integration means extend your scope in the supply chain, upper: material procurement/ lower: retail etc.

If the entity engages in vertical integration, its influence in the industry will become bigger, the risk in the asset speciality will reduce. However, the price may be much higher.

Nowadays, the success case of vertical integration is very limited, although it sounds so amazing.