In strategic management, forward vertical integration occurs when a company acquires control over its:
ARaw material suppliers
BDistribution channels or retail outlets
CDirect industry competitors
DUnrelated business sectors
Explanation
• Forward Vertical Integration involves expanding business operations into downstream activities, such as buying distributors, logistics networks, or retail outlets.
• Backward Vertical Integration occurs when a firm buys upstream suppliers of raw materials or components.
• Horizontal Integration involves acquiring direct competitors operating at the same stage of the industry value chain.
Exam Relevance
- Topic: Strategic Management
- Subtopic: Vertical Integration

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