Pisces Corp. is an apparel manufacturing company. It purchased a few of its raw material suppliers and set up their factories close to the clothing stores so that the company does not have to invest on transportation charges. This is an example of _________.

Question

Quizplus · Accepted Answer

Pisces Corp. purchasing its raw material suppliers and setting up their factories close to the clothing stores is an example of backward integration, as it involves gaining ownership or control over suppliers.