A company that integrates backward or forward can achieve market power through ________.
A) ownership advantages
B) horizontal integration
C) vertical integration
D) internalization

Question

Quizplus · Accepted Answer

Vertical integration refers to the integration of a company's supply chain, either by owning suppliers (backward integration) or owning distribution channels (forward integration). By integrating vertically, a company can achieve greater control over its operations and supply chain, which can result in cost savings, improved quality control, and increased market power.

A Company That Integrates Backward or Forward Can Achieve Market