Question

"Luxury Linens (LL) manufactures a line of luxury bed linens. LL's products can be purchased only through the company's web site. This ownership of output distribution is known as what type of integration

Answer 1

vertical integration

Step-by-step explanation:

In this case, Luxury Linens is both producing and selling their products. This means that they vertically integrated the sales channel.

There are two types of integration strategies:

• vertical integration: e.g. when a producer decides to acquire a supplier or decides to produce their own supplies and not buy them from someone else. Or the producer can decide to start selling and distributing their products directly to the final customers.
• horizontal integration: e.g. when a large online retail store like Amazon decides to acquire or start operating other types of retail stores like Whole Foods or other brick and mortar stores. A company will acquire or merge with another company that operates in the same level.