Question

Vertical integration strategies are a. a good strategy option for helping a company revamp its value chain and bypass low value-added activities. b. offer good potential to expand a company's lineup of products and services. c. are one of the best strategic options for helping companies win the race for global market leadership. d. are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries. e. extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain.

Answer 1

Answer:

The correct answer is E. Vertical integration strategies extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain.

Explanation:

In economics, vertical integration is a form of company concentration. Vertical integration is therefore also referred to as vertical company concentration.  

In general, it is an organizational form with the aim of optimizing a company's value creation and supply chains.

There are two forms of vertical integration, forward and backward integration. Forward integration involves the acquisition of the business process that follows the primary business process in the production chain. Backward integration is the takeover of the business process that enters the production chain for the primary business process. An example of vertical integration is a baker who himself will process his grain for his bread, or a steel manufacturer who buys iron ore mines to produce his own iron.