Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron, Ohio. This is an example of a ________ strategy.

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires or merges with its suppliers to control its supply chain, as Firestone did by purchasing rubber plantations to secure raw materials for its tire production.

Firestone Tire and Rubber Company Purchases Rubber Plantations in Africa