If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:
A) Monopoly.
B) Vertical integration.
C) Intertype competition.
D) A contractual channel system.
E) An administered channel system.

Question

Quizplus · Accepted Answer

Walmart's purchase of a manufacturing plant to exclusively produce their dealer brand is an example of vertical integration, where a company controls various stages of the production and distribution process.

If Walmart Purchases a Manufacturing Plant to Produce Nothing but Walmart's