Suppliers
A supplier of silicon for the solar panel industry begins to produce its own polysilicon wafers.Manufacturing
A manufacturer of coffee begins to run its own coffee plantations. This may be done to cut costs, secure a reliable supply and/or improve quality.Distribution
A distributor of office suppliers begins to manufacture its own paper products. This may be done to improve profit margins by capturing more of the value-added process.Retail
A fashion retailer begins designing and manufacturing its own line of clothing.Services
A software consulting firm begins to develop its own software products.Notes
Backward integration is a type of vertical integration.| Overview: Backward Integration | ||
Type | ||
Definition | The expansion of a business to new levels of the supply chain moving in the opposite direction of the customer. | |
Related Concepts | ||
