Which form of integration can be achieved via mergers and acquisitions or internal expansion?

• A. Horizontal
• B. Vertical
• C. Lateral
• D. Diagonal

Answer: (B)

Vertical integration is about taking control over different stages of the same industry value chain, moving either upstream to secure raw materials or downstream to control distribution. You can achieve this through mergers and acquisitions by buying a supplier or a distributor, or through internal expansion by building out those stages within the company. This is why it fits the scenario: both M&A and internal growth directly extend the company’s reach into other parts of the supply chain. Horizontal integration, in contrast, expands within the same stage by acquiring competitors, and the other terms aren’t standard ways to describe moving along the value chain.