Forward Vertical Integration in Supply Chain Control

Steps:

• Identify the company's role: film production creates movies at the upstream stage.
• Note the acquisition: cinemas operate at the downstream distribution/exhibition stage.
• Classify integration type: vertical integration expands control over supply chain stages.
• Determine direction: forward moves toward the end consumer, from production to retail.

Why C is correct:

• Forward vertical integration is defined as a firm acquiring downstream entities to control distribution, as production companies do by buying theaters to ensure movie exhibition.

Why the others are wrong:

• A: Backward vertical integration involves acquiring upstream suppliers, like raw materials for film, not downstream cinemas.
• B: Conglomerate merger combines unrelated businesses, such as films and unrelated industries like food, not supply chain stages.
• D: Horizontal integration merges competitors at the same level, like one production company acquiring another producer.

Final answer: C