What type of vertical integration involves manufacturers establishing wholesale distribution systems or company-owned retail outlets?

Question

Quizplus · Accepted Answer

Forward vertical integration involves manufacturers establishing wholesale distribution systems or company-owned retail outlets to gain control over the distribution and sale of their products, which can lead to greater efficiency and profitability.

B) Backward vertical integration involves manufacturers taking ownership of their upstream suppliers, such as raw material suppliers, to ensure reliable and cost-effective inputs.

C) Integral integration is not a recognized type of vertical integration.

D) Intermediate integration is also not a recognized type of vertical integration.

E) Market-based integration is a strategy that involves collaborating with other companies in the supply chain to improve overall efficiency and effectiveness.

What Type of Vertical Integration Involves Manufacturers Establishing Wholesale Distribution