A company that chooses forward vertical integration into downstream industries is focused on moving toward adding value to component parts, manufacturing, and raw materials.

Question

Quizplus · Accepted Answer

Forward vertical integration involves a company moving closer to the end customer in the supply chain, typically by taking over distribution or retail aspects, not by adding value to raw materials or component parts, which would be more characteristic of backward vertical integration.

A Company That Chooses Forward Vertical Integration into Downstream Industries