Question

Fortress International, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. Aside from this, the company does not solely depend on outside distributors to reach its customers. In fact, it has its own retail stores to distribute its products. In this scenario, which of the following alternatives to vertical integration is Fortress International applying?
a. concentric integration
b. taper integration
c. horizontal integration
d. conglomerate integration

Answer 1

Answer:

b. taper integration

Explanation:

Taper integration is a vertical integration strategy which involves partial backward and forward integration strategy, mixed together in the business of a firm. In order words, the company buys part of the supply chain needed for its production process, while it outsource some from other suppliers, also, after the production process, it part of the distribution process is controlled by the firm while it relies on external distributors to handle some of the distribution of its products.