Which is seen in the example below: horizontal integration, vertical integration, low-cost strategy, global strategy, diversification...

In my opinion, this is an example of vertical
integration.

Vertical integration happens when a company
buys up certain kinds of other companies.  Specifically, it is when a company buys up
companies that supply it with things that it needs or that buy the product it makes. 
For example, if a car company buys a glass company, that is vertical integration because
every car needs lots of glass.  In this case, Pepsi is going buy KFC because KFC is a
company that will buy Pepsi's products.

So vertical
integration is where you buy companies that go up and down the supply chain.  This is
clearly an example of that.