Which is seen in the example below: horizontal integration, vertical integration, low-cost strategy, global strategy, diversification strategy?
PepsiCo purchased KFC so it could replace Coke products with Pepsi products in KFC restaurants. This is an example of which strategy?
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In my opinion, this is an example of vertical integration.
Vertical integration happens when a company buys up certain kinds of other companies. Specifically, it is when a company buys up companies that supply it with things that it needs or that buy the product it makes. For example, if a car company buys a glass company, that is vertical integration because every car needs lots of glass. In this case, Pepsi is going buy KFC because KFC is a company that will buy Pepsi's products.
So vertical integration is where you buy companies that go up and down the supply chain. This is clearly an example of that.
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