Backward integration is a growth
strategy that relates to the concentration strategy. In vertical growth and
concentration strategies, backward integration assumes functions of the
previously catered by the intermediaries of the supply chain. Basically, the
prime purpose behind this strategy is to guarantee the quality of key input and
full control of the important organizational resources. (Li & Chen, 2018). While writing the
article researchers primarily focused on the fact that backward integration has
capability realign competition between market retailers and manufacturing. The
study was related to the business example of Backstabber Company. Results
projects that companies which are utilizing backward integration strategy
related knowledge earned better outcomes. In fact, it supports a company to
stand out side the crime sense
Reference of Backward Integration Growth Strategy
Li, W., & Chen, J. (2018). Backward Integration
Strategy in a Retailer Stackelberg Supply Chain. Omega, 75, 118-130.