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Am I correct in stating that "Vertical diversific…

Am I correct in stating that "Vertical diversification integrates firms forward or backward in the …

Am I correct in stating that "Vertical diversification integrates firms forward or backward in the product chain."?

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Chiranjibi Chapagain Mar. 08, 2018

Yes, you would be correct.

That's because, in a vertically integrated diversification, firms opt to engage in businesses that are related to the existing business of the firm.

It essentially moves forward or backward in the chain and enters specific product with the intention of making them part of new businesses for the firm.