Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron,Ohio.This is an example of which of the following strategies?

Question

Quizplus · Accepted Answer

Purchasing firms that produces inputs for the company's products 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).

Firestone Tire and Rubber Company Purchases Rubber Plantations in Africa