Firestone Tire and Rubber Company set up a chain of Firestone retail stores to sell its tires to American consumers.This is an example of:

Question

Quizplus · Accepted Answer

Setting up stores that sell the company's own products makes it forward 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 Set Up a Chain of Firestone