Incline Electronics relied on a large chain of consumer electronics stores to sell its tablet computers, cell phones, and televisions and also to provide customer service and technical support. However, that retailer outsourced its service departments, and customers began to complain that they could not get reliable tech support for Incline products. In response, Incline Electronics decided to set up its own tech support department, and it also began to investigate opening its own brand-based retail stores. What does this scenario best illustrate?
A) crowdsourcing
B) new product development
C) forward vertical integration
D) conglomerate diversification

Question

Quizplus · Accepted Answer

This scenario best illustrates forward vertical integration. Forward vertical integration involves moving ownership of activities closer to the end customer.

Incline Electronics Relied on a Large Chain of Consumer Electronics