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Which of the following is an example of vertical integration?

purchasing competitors

purchasing suppliers

informally agreeing on prices

buying stock in competing companies

Verified Answer :

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Answer:

The correct answer is "purchasing suppliers"

Explanation:

Vertical integration is a growth strategy for a company or business and is widely used in all types of markets.

Through this integration process, companies cover a greater number of utilities. From the initial phase of the production process of a product until the end of the chain as the supply of customers. There are different processes that can be used by the company, who is going to make the best decision of which goods or services are going to offer and, within the same chain which parts are going to do by themselves and which ones to outsource.

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Vertical integration is a process in which a company integrates it supply chain and managed it by own. Thus, the correct option is B). purchasing suppliers.

What is vertical integration?

Vertical integration is a term of microeconomics, management, and international political economy, is an arrangement in which the supply chain of a company is integrated and owned by that company.

It refers to the systematic expansion of a strategy, in which one company takes control over one or more stages in the production or distribution of a product.  Both of the production and distribution strategies are undertaken by a company in order to make its position strongest among competitors.

Generally, in vertical integration each member of the supply chain produces a different product or service, and the products combine to satisfy a common need.

Learn more about vertical integration here:-

https://brainly.com/question/13962641

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