If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores,the distribution company would be exemplifying:
A) Backward vertical integration
B) Forward vertical integration
C) Backward horizontal integration
D) Forward horizontal integration

Question

Quizplus · Accepted Answer

Forward vertical integration involves a company expanding its operations by acquiring a distribution channel or customer-facing business that is closer to the end consumer. In this case, the distribution company purchasing a chain of grocery stores would be an example of forward vertical integration as the company would be integrating forward in the supply chain towards the end consumer.

If a Distribution Company That Focused on Warehousing and Distribution