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When a company grows by acquiring suppliers or raw material producers upward in its supply chain, it is executing:

ABackward Vertical Integration
BConglomerate Integration
CForward Vertical Integration
DHorizontal Integration

Explanation

* Backward Vertical Integration occurs when a firm acquires or controls companies that produce inputs or raw materials for its own operations.
* Forward vertical integration moves downstream toward distributors or retailers; Horizontal integration acquires industry competitors.
* Backward integration provides greater control over supply availability, input quality, and component costs.

Exam Relevance
  • Topic: Strategic Marketing
  • Subtopic: Growth Strategies
Submitted by: mcqstutor Team More Marketing MCQs →

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