When Hewlett-Packard sells inkjet printers to Europe, they make generic inkjet printers in U.S. and customize the power supply units in its European distribution center. This is an example of which of the following?
forwards integration
backwards integration
forwards integration
It is a forward integration because here, Hewlett-Packard controls the printers’ characteristics right at the stage of the inception of the supply chain, by making generic inkjet printers and later customizing the power supply units in the European distribution center, as they move ahead along the side of supply chain. Had they moved backward, it would have been termed as Backward integration but they moved forward in integrating their printers to make them suitable in the European markets after initially making the generic printer, hence it is an example of forward integration.
When Hewlett-Packard sells inkjet printers to Europe, they make generic inkjet printers in U.S. and customize...