Making investments in distribution in order to leapfrog channels of distribution that are tightly controlled by competitors is an example of ________.
A) an internalization advantage
B) an ownership advantage
C) forward integration
D) backward integration

Question

Quizplus · Accepted Answer

The strategy of investing in distribution to bypass competition-controlled channels of distribution is called forward integration. This allows a company to gain better control over the distribution process, reduce costs, and improve efficiency. Internalization and ownership advantages involve establishing operations and control over resources in foreign markets, while backward integration involves purchasing suppliers or manufacturers to bring stages of the production process in-house.

Making Investments in Distribution in Order to Leapfrog Channels of Distribution