Increasing vertical integration by acquiring suppliers or otherwise increasing level of self supply....more on Backward integration
Acquisition by a firm of its suppliers.
Occurs when a company joins with a firm that is involved at an earlier stage of the production chain. An example might be a brewery taking over a hop or barley farm.
Backward integration is a method of vertical integration that extends to the previous levels of the supply chain, aiming to protect the quality of a product or a service by gaining control over the raw materials. In other words, it?s when a company purchases a supplier in or a supplier?s rights to materials in an effort to control its?supply chain....