When Gallo purchased a company that makes wine bottles, it was involved in ________.
A) horizontal integration
B) backward vertical integration
C) forward vertical integration
D) upward integration

Question

Quizplus · Accepted Answer

Purchasing a supplier of raw materials is backward vertical integration. Vertical integration is a corporate-level strategy in which a company expands its business operations either backward into a new industry that produces inputs for the company's products (backward vertical integration) or forward into a new industry that uses, distributes, or sells the company's products (forward vertical integration).

When Gallo Purchased a Company That Makes Wine Bottles, It