Allure Fabrics Corp.supplies cotton,linen,and silk fabrics to various designer wear boutiques in and around Florida.The firm has recently launched a boutique in Florida under its own brand name to sell women's fashion apparel.Allure Fabrics is practicing:

Question

Quizplus · Accepted Answer

Forward vertical integration refers to a situation where a company expands its operations by acquiring or establishing its own retail or distribution channels. In this case, Allure Fabrics Corp. is supplying fabrics to various designer wear boutiques, but has now launched its own boutique to sell its own women's fashion apparel. This is an example of forward vertical integration as it involves the company owning and operating its own retail channels.