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If an orange juice manufacturer bought an orange grove, a shipping company, and a grocery store, this would be an example of ____________________ integration.

User Tejus
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1 Answer

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Answer:

vertical intergartion.

Step-by-step explanation:

Vertical integration is a type of integration in which a company integrates by owning its suppliers, distributors, etc. It is a strategic form of intergration through which company integrates itself by owning or controlling locations of supplies, retailers, distributors, etc. Through this form of integration, a company is able to control the costs of production, process, etc.

In the given scenario, the orange juice manufacturer has used vertical integration. The manufacturer has integrated his company by owning its distributor, retailers, and location of supplies, that is orange grove, shipping company, and a grocery store.

Thus the correct answer is vertical integration.

User Cloxure
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