PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.
A)horizontal integration
B)vertical integration
C)low-cost
D)global

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company acquires another company that is involved in a different stage of the production process. In this case, PepsiCo purchased KFC, which is a restaurant chain that sells food and beverages. This acquisition allowed PepsiCo to control the entire production process, from the production of the food and beverages to the sale of those products to consumers.

PepsiCo Purchased KFC So That It Could Replace Coke Products