Baby doe’s, a designer and manufacturer of children’s clothing, has decided to purchase a retail chain specializing in children’s clothing. this purchase is a(an):

vertical acquisition

Explanation:

According to my research on different types of business strategies, I can say that based on the information provided within the question this purchase is an example of a vertical acquisition. This term is defined as Buying or taking over a firm in the same industry in which the acquired firm and the acquiring firm represent different steps business process. Since Doe does designing and manufacturing, and then purchases a retail chain then he is purchasing a business of the same category but different goal within the same business.

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