Question

When gallo purchased a company that makes wine bottles, it was involved in:?

Answer 1

The answer is backward vertical integration.  

When Gallo purchased a company that makes wine bottles, it was involved in backward vertical integration.  

Backward vertical integration refers to the corporate level strategy where a company expands its operations by acquiring an industry that manufactures products for use by the company’s own products.

Answer 2

When Gallo purchased a company that makes wine bottles, it was involved in backward vertical integration.

Backward integration is a type of vertical integration which involves a merger with, or the purchase of, suppliers up the supply chain. Backward integration is pursued by the companies when they expect that it will help to improve efficiency and reduce costs.