Backward Integration

 
   

Definition: Backward Integration is a strategy of seeking ownership or increased control over suppliers (backwards in the supply chain).
BI is a vertical integration strategy, just as forward integration, which focuses on the distributors or retailers side.
Unlike horizontal integration, in BI the firm acquires activities at other levels of the value chain.


   

   

More on backward integration. More on collaboration: Forward Integration, Joint Venture, Quasi-Vertical Integration, Vertical Integration, Win-win Situation.

   


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