Vertical integration occurs when:单项选择题

A

A firm moves into a completely unrelated industry to spread risk

B

A firm merges with a direct competitor to increase market share

C

A firm expands its operations into stages of the value chain it previously did not control: either upstream toward suppliers or downstream toward customers

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The merger of two companies in the same industry that make products required at different stages of the production cycle is called ________.  

Question at position 37 When Amazon purchase Whole Foods, it allowed Amazon to integrate its extensive e-commerce logistics with Whole Foods' brick-and-mortar stores, enhancing its distribution capabilities and providing a seamless online-to-offline shopping experience for customers. This is an example of what type of vertical integration? Backward vertical integrationForward vertical integration

Question at position 36 Which one of the following statements is NOT true about vertical integration? A vertical integration framework is sometimes called a make-or-buy framework.Vertical integration can be backward or forward. It helps managers and practitioners make decisions about which assets and elements of a value chain a firm should own and which they can buy from other firms.The theory underlying the vertical integration framework is the Total Competitive Economics (TCE) theory.

A coffee company that acquires a chain of retail cafes to sell directly to consumers is an example of forward integration. A coffee company that purchases a coffee bean farm to control its supply of raw materials is an example of backward integration. Which of the following best summarizes the difference between the two?

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