Which of the following statements best describes forward integration?
A)A firm purchases its suppliers in order to make a product itself rather than buying it from another firm.
B)A firm imposes extra costs on customers for changing brands.
C)A firm goes into the business of its former buyers, rather than continuing to sell products to them.
D)A firm joins an alliance with its competitor to share materials.

Question

Quizplus · Accepted Answer

Forward integration refers to a business strategy where a company expands its operations into the business activities that are at the next stage in the value chain, typically by going into the business of its customers or distributors. This is done to control the distribution or sales process more directly.

Which of the Following Statements Best Describes Forward Integration