Coral Corp. is a company that initially used to manufacture handbags. It has now set up a store in which it sells its own products rather than supplying them to different stores. This initiation by Coral Corp. best illustrates _________.
A)forward integration
B)backward integration
C)horizontal diversification
D)market penetration

Question

Quizplus · Accepted Answer

Forward integration refers to a company's decision to own and control the distribution and/or retailing of its products. In this case, Coral Corp. is no longer supplying its handbags to different stores, but has set up its own store to sell its products directly to consumers, which is an example of forward integration.