Which of the following is an example of BACKWARD integration for an automobile manufacturer?
A) installation of robotic welding equipment on the factory floor
B) creation of a marketing plan to offer a factory rebate upon the purchase of a new car
C) opening new company-owned car dealerships
D) acquisition of a sheet metal company that is a major supplier to the automobile industry

Question

Quizplus · Accepted Answer

Backward integration refers to a strategy where a company acquires a supplier, so as to control the supply chain and reduce dependency. Acquiring a sheet metal company, which is a major supplier to the automobile industry, would be an example of backward integration for an automobile manufacturer.

Which of the Following Is an Example of BACKWARD Integration