what is bacward integration...
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Backward integration is a form of vertical integration that involves the purchase of, or merger with, suppliers up the supply chain. Companies pursue backward integration when it is expected to result in improved efficiency and cost savings.
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Backward integration takes place when a firm enters a merge with a supplier to take advantage of specialized resources and protect the quality of the goods and services produced. Firms participate in backwards integration to protect the supply of raw materials, thereby creating a competitive advantage.
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