Question

If Digipics were to begin selling the cameras it assembled directly to customers through a website operated by the company, this would be an example of:
A) backward vertical integration
B) a strategic alliance
C) forward vertical integration
D) opportunism

Answer 1

Answer:

The correct answer is letter "C": forward vertical integration.

Explanation:

Forward integration happens when a company assumes roles that were initially carried out by its supply chain partners. Forward integration can be horizontal and vertical. Forward horizontal integration happens when one firm takes over another at the same supply chain level. In forward vertical integration, the companies situated further down the supply chain are taken over by a company which implies the integrating firm will be making direct contact with end-consumers.