Directions Of Integration

Question 1

Forward + vertical

Answer 1

Acquiring a business further up in the supply chain- e.g. manufacturer buys a distributor

Question 2

Backward + vertical

Answer 2

Acquiring a business operating earlier in the supply chain e.g. a retailer buys a wholesaler

Question 3

Horizontal

Answer 3

Acquiring a business at the same stage of the supply chain e.g. a manufacturer buys a competitir

Question 4

Conglomerate

Answer 4

Where the acquisition has no clear connection to the business buying it