Vertical integration is when a company expands backwards or forwards within its own value network and becomes its own supplier or distributor.

• A. Expands product range
• B. Outsourcing
• C. Focus on core activities
• D. Backwards or forwards within its own value network and becomes its own supplier or distributor

Answer: (D)

Vertical integration is a strategy where a company extends its control along its value chain by taking ownership of stages of production and distribution, either backwards toward suppliers or forwards toward customers. This can give more control over costs, quality, and timing, and reduce dependence on outside providers. The description that matches this is moving backwards or forwards within the value network and becoming its own supplier or distributor. The other options describe expanding offerings, outsourcing activities, or focusing on core activities, none of which involve owning stages of the supply chain.