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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
Submitted by: mcqstutor Team More Management MCQs →

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