Which of the following is an example of vertical integration?
A) A clothing retailer expands into banking and electronics.
B) A manufacturing ﬁrm invests in training and development in order to increase labour
C) A supermarket takes over a dairy farm so that it can produce and package its own dairy products.
D) A bank automates its banking processes in order to increase eﬃciency.

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company expands its operations into an area that's within its existing supply chain. Option C, where a supermarket takes over a dairy farm to produce and package its own dairy products, is an example of vertical integration because the supermarket is acquiring control over a part of its supply chain.

Which of the Following Is an Example of Vertical Integration