Steinem's, a women's clothing line, decides to acquire a company that owns several retail outlets that sell its clothing. This is an example of a merger.

Question

Quizplus · Accepted Answer

This is an example of forward vertical integration, as Steinem's is acquiring a company that is at a later stage in the supply chain (retail outlets) to increase its control over the distribution and sale of its clothing.

Steinem's, a Women's Clothing Line, Decides to Acquire a Company