Ernesto's family business has been manufacturing shoes for three generations.In the past, the shoes have been sold to retailers around the world, but recently, Ernesto opened three retail stores to sell the shoes directly to customers.This is an example of backwards integration.

Question

Quizplus · Accepted Answer

This is an example of forward integration, as the company is moving closer to the consumer by opening retail stores, rather than moving backwards into the supply chain.

Ernesto's Family Business Has Been Manufacturing Shoes for Three Generations