In order to reduce production costs, Tryon Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as
A) concentration.
B) vertical integration.
C) related diversification.
D) unrelated diversification.
E) differentiation.

Question

Quizplus · Accepted Answer

Vertical integration involves a company taking control of its supply chain by owning or controlling its suppliers or distributors. In this scenario, Tryon Inc. is vertically integrating by owning a glass plant to manufacture the windows for their cars, thus reducing production costs.

In Order to Reduce Production Costs, Tryon Inc