Question

Snowcap ice cream produces over a dozen delicious ice cream flavors and a number of individually packaged frozen treats. Which of these strategies would represent vertical integration for Snowcap?

1) Acquiring a dairy farm to produce milk for the ice cream
2) Partnering with a local bakery to supply cookies for ice cream sandwiches
3) Opening a new store in a different city to expand market reach
4) Offering a new line of sorbets made with fresh fruit

Answer 1

The strategy that represents vertical integration for Snowcap ice cream is acquiring a dairy farm to produce milk for the ice cream. So the correct answer is option 1.

Step-by-step explanation:

Vertical integration is a strategy in which a company expands its business activities into different parts of the supply chain. In the case of Snowcap ice cream, the strategy that represents vertical integration would be acquiring a dairy farm to produce milk for the ice cream. By producing their own milk, Snowcap can control the quality and supply of this essential ingredient for their ice cream production.