BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Backward integration is a strategy that uses vertical integration to boost efficiency. Vertical integration is when a company encompasses multiple segments of the supply chain with the goal of controlling a portion, or all, of their production process.

Detailed explanation-2: -Sometimes organizations can establish their own subsidiary and complete backward integration. A backward integration example could be a bakery purchasing a grain processor. Another backward integration example could be an automobile organization owning a tire organization, a glass organization and a metal organization.

Detailed explanation-3: -Backward and Forward integrations are two mixing strategies which most companies adapt to achieve competitive advantages in the market and to achieve control over the value chain of the industry under which they are operating.

Detailed explanation-4: -Backward vertical integration involves acquiring a business operating earlier in the supply chain – e.g. a retailer buys a wholesaler, a brewer buys a hop farm. Another good example was Apple Inc. buying a chip supplier Dialog in 2018.