Which of the Following Best Illustrates Forward Vertical Integration

question 59

Multiple Choice

Which of the following best illustrates forward vertical integration?

• A) A firm that manufactures and sells car engines to major automobile companies launches its own line of cars.
• B) A chain of ice cream parlors launches a brand of toys and accessories for children.
• C) A multinational coffee chain sources its coffee beans from plantations in Brazil and Vietnam.
• D) A designer shoe company that previously purchased leather from external suppliers establishes its own leather tannery.

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Definitions:

Contractual Agreement

A legally binding contract that specifies the terms and conditions agreed upon by two or more parties.

Corporate Brand

The overall identity of a corporation as perceived by its customers, including its logo, communication, and visual appearance.

New Brand

The process of creating a new identity, including name, symbols, and design, for a product or company to establish its presence in the market.

Subbranding

The strategy of creating a secondary brand within the main brand to cater to a different segment of the market or to differentiate products within the same category.