A winery decides to manufacture its own packaging bottles instead of purchasing them from a bottle manufacturing company to reduces costs. The winery is employing a forward vertical integration strategy.

Question

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Forward vertical integration involves a company moving closer to the end consumer, such as a winery opening its own retail stores. Manufacturing its own bottles is backward vertical integration, as it involves taking control of a previous stage in the supply chain.

A Winery Decides to Manufacture Its Own Packaging Bottles Instead