Alpha Computers, a firm that assembles and sells desktop computers, decides to manufacture computer parts such as mother boards and monitors. In this example, Alpha Computers uses which of the following strategies?
A) Backward vertical integration
B) Unrelated diversification
C) Product development
D) Market penetration
E) Related diversification

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, such as manufacturing its own parts.

Alpha Computers, a Firm That Assembles and Sells Desktop Computers