Question

Explain the difference between Forward vertical integration and backward vertical integration with an example

Answer 1

Answer:

Companies can integrate vertically in two ways: backward or forward. Backward integration occurs when a company decides to buy another company that makes an input product for the acquiring company's product. ... Forward integration occurs when a company decides to take control of the post-production process

Answer 2

Answer:

Companies can integrate vertically in two ways: back ward or forward.

Backward integration occurs when a company decides to buy another company that makes an input product for the acquiring company's product.

Forward integration occurs when a company decides to take control of the post - production process.