Virtue Products Inc., a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries.This apart, 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 Virtue Products applying?
A) Concentric integration
B) Taper integration
C) Horizontal integration
D) Conglomerate integration

Question

Quizplus · Accepted Answer

In this scenario, Virtue Products is applying taper integration. Taper integration is a way of orchestrating value activities in which a firm is backwardly integrated, but it also relies on outside-market firms for some of its supplies, and/or is forwardly integrated but also relies on outside-market firms for some if its distribution.