Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payment industries so it would have more control over the entire process. Alibaba's acquisition is an example of
A) digital distribution.
B) channel cooperation.
C) horizontal channel integration.
D) vertical channel integration.
E) full-line forcing.

Question

Quizplus · Accepted Answer

Alibaba's acquisition of firms in the delivery and payment industries shows vertical channel integration, in which a company acquires firms that are within the same supply chain to gain more control over the production and distribution process.

Alibaba Is a Chinese E-Commerce Firm Similar to Amazon