Green Solutions Corp. is a washing machine manufacturing company. When it initially started out, it had held contracts with a supplier who provided the company with finished washing machine parts. However, Green Solutions later started manufacturing the parts by itself and assembling its products within the company without having to seek supplier intervention. This scenario best exemplifies _________.
A)vertical integration
B)market penetration
C)task specialization
D)horizontal diversification

Question

Quizplus · Accepted Answer

This scenario best exemplifies vertical integration as the company started manufacturing the parts by itself and assembling its products within the company without having to seek supplier intervention. Vertical integration refers to a company expanding its operations by taking control of more stages of the supply chain, such as manufacturing its own parts or acquiring its own suppliers.