Question

A firm can pursue vertical integration by all of the following EXCEPTa) starting its own operations in other stages of the virtual activity chain.b) engaging in a full integration, a partial integration, or a tapered integration.c) entering into a strategic alliance or joint venture. d) acquiring a company already performing the activities it wants to bring in-house.e) expanding its range of product and service segments within its product or service market.

Answer 1

Answer:

The correct answer is option e.

Explanation:

Vertical integration refers to the situation when a company expands its operations in several production steps involved in the creation of its product.

If the company expands operation in the supply of raw materials, it is forward integration. If it expands in the creation and/or supply of raw materials, it is backward integration.  

If the company expands production within its product or service market it cannot be classified as vertical integration.