When a firm expands downstream,it is engaging in a process called

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When a firm expands downstream, it is engaging in a process of forward integration, which involves acquiring or merging with companies involved in the next stage of the value chain, closer to the final consumer. This can help the firm to gain more control over the distribution and marketing of its products, increase its market power, and capture more profits. Conglomerate diversification involves expanding into unrelated businesses, while backward integration involves acquiring or merging with companies involved in the previous stage of the value chain, closer to the raw materials. Related diversification involves expanding into related businesses that have some synergy with the existing business.

When a Firm Expands Downstream,it Is Engaging in a Process