_____ occurs when a company moves into areas it previously served either as a supplier to or as a customer for its current products or services.
A) Horizontal integration
B) Vertical integration
C) Diversification
D) Retrenchment strategy
E) Concentration strategy

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company expands its operations by moving into areas it previously served either as a supplier to or as a customer for its current products or services. This can involve either upstream or downstream integration. Upstream integration involves acquiring suppliers, while downstream integration involves acquiring distributors or retailers. Through vertical integration, a company can reduce its costs, improve its control over its supply chain, and increase its market power.

_____ Occurs When a Company Moves into Areas It Previously