Porsche Automobil Holding and Volkswagen once owned each other's stock and planned to integrate the companies later.This diversification strategy is ____.

Question

Quizplus · Accepted Answer

This is a clear example of a merger, where two companies come together to form a single entity. Porsche and Volkswagen had plans to integrate their operations before the merger. Acquisitions involve one company acquiring another, horizontal integration involves companies in the same industry merging, backward integration involves a company acquiring its suppliers, and forward vertical integration involves a company acquiring its distributors or retailers.

Porsche Automobil Holding and Volkswagen Once Owned Each Other's Stock