Tag: backward integration example in india

Backward Integration and Competitive environment

Backward integration

At present scenario of globalization, firms try to gain competitive advantages by using different strategies and approaches such as generic strategies of cost leadership and differentiation. In addition, some aggressive strategies of mergers and acquisitions have also been applied in various industries to beat the existing competition (Porter, Michael E, 1985). In this red-ocean of competitive forces, vertical integration strategies; forward integration that is owning downstream buyers and distribution channels and backward integration that is owning upstream suppliers have also gained much significance, however, decision for these strategies depend upon different aspects of that specific industry environment such as the…

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