A Vertically Integrated Firm Is One That Performs Value Chain

question 48

Multiple Choice

A vertically integrated firm is one that performs value chain activities along more than one stage of the industry's overall value chain and such integration is not considered to be

• A) backward integration (industry value chain activities performed previously by buyers).
• B) either partial integration (building positions in selected stages of the value chain)or tapered integration,which is a strategy that involves both outsourcing and performing the activity internally.
• C) tapered forward (e.g. ,engaged directly in the sales operating activity to end users at the same time selling to third parties).
• D) full integration (participating in all stages of the industry vertical chain).
• E) forward integration (value chain activities performed by distributors)or forward toward end users.

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Definitions:

Product Life Cycle

Refers to the sequence of stages a product goes through from introduction to growth, maturity, and decline.

Competitive Pressure

The force or influence that competitors exert on each other in a marketplace, driving innovation, quality improvements, and often leading to lower prices for consumers.

Product Availability

The extent to which goods or services can be purchased at any given time from a supplier.

Delivering a Product

The process of transporting a product from the manufacturer or supplier to the final customer or point of use.