Question

Smart Phone Inc. manufactures its custom phone cases for its awesome phones and tablets. It also manufactures its custom touch screen sensors and owns its own shipping company that delivers its phones and tablets straight to customer homes. Smart Phone Inc. is great at:________

Answer 1

The correct answer would be, Vertical Acquisition.

Smart Phone Inc. is great at Vertical Acquisition.  

Explanation:

When a company buys another company which is in the same industry, but at a different stage in the production cycle, then this acquisition is called as the Vertical Acquisition.

By acquiring two companies which operate in the same industry, many unnecessary processes can be avoided. This can reduce the cost of manufacturing the product. Similarly the reliance to another company is also eliminated.

So in the given question, when Smart Phones Inc. uses another shipping company to ship their phones directly to the customers, and the shipping company is owned by them, then this is called as the Vertical Acquisition.

Learn more about Vertical Integration at:

brainly.com/question/11773609

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