Question

Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers. Delux was recently approached by Imagination Station, a large computer manufacturer, about purchasing their company. Imagination Station is engaging in:

Answer 1

Answer:

Vertical integration

Explanation:

Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers. Delux was recently approached by Imagination Station, a large computer manufacturer, about purchasing their company. Imagination Station is engaging in: vertical integration

Vertical integration is when a company is either completely in control or it owns its suppliers, distributors, or retail locations, the reason being that by controlling it makes their product or service more valueable in the supply chain. This benefits companies by allowing them to control the everything surrounding their oroduct, reduce costs, and improve efficiencies. In the case of Imagination Station by wanting to purchase Delux Technologies they want complete control of selling of computers.

Answer 2

Answer:

Imagination Station is engaging in Vertical Integration.

Explanation:

Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.

In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.