The Strategic Impetus for Forward Vertical Integration Is to

question 26

Multiple Choice

The strategic impetus for forward vertical integration is to

• A)gain better access to end users and better market visibility.
• B)achieve the same scale economies as wholesale distributors and/or retail dealers.
• C)control price at the retail level.
• D)bypass distributors and dealers and sell direct to consumers at the company's website.
• E)build a core competence in mass merchandising.

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Definitions:

Producer Surplus

The division in value between what producers are inclined to take for a product or service and the payoff they ultimately secure.

New Producers

Entities or individuals that have recently entered a market to offer goods or services.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount received from the sale, indicating the benefit to producers.

Supply Curve

A visual diagram illustrating the correlation between a product's price and the amount of it suppliers are prepared to produce.