Which of the following is an advantage of forward vertical integration?

• A. The business can control supply of their products and could decide not to supply to competition
• B. It reduces product quality
• C. It reduces the need for distribution channels
• D. It guarantees cheaper raw materials

Answer: (D)

Forward vertical integration means a company moves closer to the customer by owning its distribution channels or retail outlets. The main advantage is gaining stronger control over how products reach buyers, including where they are sold and at what price. This control can help protect brand consistency, improve margins, and even limit rivals from using the same outlets.

The option that describes controlling the supply to customers and having the option not to supply to competitors best reflects this advantage, since it highlights the power gained over distribution and channel access. The other ideas don’t fit as advantages: cheaper raw materials isn’t guaranteed with forward integration (that benefit would come from backward integration, toward suppliers); reducing the need for distribution channels is unlikely because stronger channel control is a key feature of forward integration; and improving product quality isn’t an inherent guarantee of this strategy.