Bella Dairy Products, a company producing ice creams, has recently bought two dairy farms. This strategic action falls under the category of _____.

Question

Quizplus · Accepted Answer

Vertical integration refers to the strategy of acquiring businesses that are a part of a company's supply chain, either backward (towards suppliers) or forward (towards customers). In this case, Bella Dairy Products has acquired dairy farms, which are a part of their supply chain and can help them in sourcing milk and other ingredients for their ice creams.

Bella Dairy Products, a Company Producing Ice Creams, Has Recently