If Good Smells, a perfume manufacturer, purchases several local retail shops to sell their perfumes, this is an example of______ .
A)forward integration
B)outsourcing
C)divestiture
D)backward integration

Question

Quizplus · Accepted Answer

Forward integration is a strategy that involves a company expanding its business by acquiring distribution channels. In this scenario, Good Smells, a perfume manufacturer, is purchasing local retail shops to sell their perfumes, which is an example of forward integration. This allows the perfume manufacturer to directly reach its customers and control the retail selling process.

If Good Smells, a Perfume Manufacturer, Purchases Several Local Retail