The correct answer is vertical integration. Integration may take several forms, such as horizontal, vertical, lateral, and diagonal, circular, or maybe a mixture of two or more of these types. Horizontal Integration: A horizontal combination comes into being when units carrying on the same trade or pursuing the same productive activity join together with a common end in view. Example of horizontal combinations are;Disneys 2006 acquisition of Pixar. Facebooks 2012 acquisition of Instagram. Vertical Combinations: Vertical integration is the combination of firms in successive stages of the same industry. It implies the integration of various processes of an industry. Vertical combinations are brought into existence with the following objects in view:To eliminate the wasteful and unnecessary expenses involved in carrying on the connected processes separately. To eliminate middlemen functioning between various unitsTo securer economies in marketing, advertising, and transportTo maintain control over the quality of raw materials and finished products. Therefore, The combination of firms in successive stages of the same industry may be referred to as Vertical Integration. Forward vs Backward IntegrationIn forward integration, the company acquires or merges with a distributor. Backward integration is where the company acquires or merges with a supplier or manufacturer. PurposeThe main purpose of forward integration is to achieve a larger market share. The main purpose of backward integration is to achieve economies of scale.