Is the following statement correct?   Vertical integration is the process of a company expanding its operations either backward into an industry that produces inputs for the company’s products, such as raw materials or product components. For example, producing car batteries is an input of the automotive industry but can also be integrated vertically. Vertical integration can also be done forward into an industry that uses, distributes, or sells the company's products and it moves to the final delivery of the product to the customer. The parallel shifts from car ownership to the mobility of demands change the automotive industry. Car manufacturers test different business models, such as car sharing, in order to morph into mobility providers which is a typical forward integration strategy.   Please choose an answer: True Not correct

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Is the following statement correct?

 

Vertical integration is the process of a company expanding its operations either backward into an industry that produces inputs for the company’s products, such as raw materials or product components. For example, producing car batteries is an input of the automotive industry but can also be integrated vertically. Vertical integration can also be done forward into an industry that uses, distributes, or sells the company's products and it moves to the final delivery of the product to the customer. The parallel shifts from car ownership to the mobility of demands change the automotive industry. Car manufacturers test different business models, such as car sharing, in order to morph into mobility providers which is a typical forward integration strategy.

 

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