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The new owners of a long-established clothing retailer have experience in garment manufacturing and as a result they decide to expand into that business. This type of business growth is called

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Final answer:

The type of business growth where the owners of a clothing retailer expand into garment manufacturing is called vertical integration. This represents a form of backward vertical integration as the company is moving back along its supply chain.

Step-by-step explanation:

The business growth described in the scenario where the owners of a clothing retailer with experience in garment manufacturing decide to expand into that field is termed as vertical integration. Vertical integration happens when a company expands its operations into areas that are at different points on the same production path. In this case, a clothing retailer moving into garment manufacturing represents a form of backwards vertical integration, as the company moves back along the supply chain.

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