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.
E) strategic alliance.

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 Was