Question

Which of the following best describes vertical integration?

Answer 1

Answer:

A. the control of production from raw materials to sale and production

Explanation:

A plan of action where a company controls its suppliers and distributors is called vertical integration. The strategy of vertical integration allowing the companies to control the process, reduce costs, and improve efficiencies.

For example, Netflix, which started as a DVD rental company, but now it uses its distribution to promote their created content alongside films from major studios.

Besides, the benefit of vertical integration, it has its disadvantages. In this integration, significant amounts of investment are required.

Answer 2

Based on the information you gave me the best that would fit is A due to the fact that vertical integration means “the combination in one company of two or more stages of production normally operated by separate companies.”