PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants.This is an example of a _________ strategy.
A) horizontal integration
B) vertical integration
C) low-cost
D) global
E) diversification

Question

Quizplus · Accepted Answer

Purchasing outlets that sells the company's 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).

PepsiCo Purchased KFC So That It Could Replace Coke Products