While there are no fairy tale solutions . Vertical integration gives lot more control which can give gain competitive advantage if done correctly either by doing it cheaper or adding features your competiton cannot
In your ancedote the buying company seems to be benefit with increased sales for a non competitive product. Ofcourse they are doing at the expense of the eroding target , but they are deriving value not the way you see it perhaps or the best possible one but value nonetheless.
In your ancedote the buying company seems to be benefit with increased sales for a non competitive product. Ofcourse they are doing at the expense of the eroding target , but they are deriving value not the way you see it perhaps or the best possible one but value nonetheless.