Final answer:
Philip-Morris's acquisition of Kraft, Inc. represents an example of conglomerate diversification, where a company diversifies into an unrelated business sector to reduce risk and promote growth.
Step-by-step explanation:
When Philip-Morris, the tobacco giant, purchased Kraft, Inc., it was essentially a case of conglomerate diversification. Conglomerate diversification occurs when a company expands into an area of business that is different from its current operations. In this case, a tobacco company expanded into the food industry, which is unrelated to its original product line. This move was intended to diversify Philip-Morris's business interests and reduce the company's overall risk by entering a different market sector.
The other options listed do not apply to this situation. Vertical integration refers to a company acquiring businesses along its supply chain, which was a strategy used by John D. Rockefeller in the oil industry. Horizontal integration involves a company buying its competitors in the same industry, which increases its market share. Concentric diversification is when a company expands into a related industry, which wasn't the case for Philip-Morris and Kraft, Inc.