Texas Union Gas and Electric provides utilities for three counties. The company recently started drilling its own gas wells in order to gain control over price and availability of product for its pipelines. Texas Union is following a strategy of __________.
A) forward integration
B) backward integration
C) horizontal integration
D) conglomerate diversification

Question

Quizplus · Accepted Answer

Backward integration refers to a company expanding its role to fulfill tasks formerly completed by businesses up the supply chain, in this case, drilling its own gas wells to supply its pipelines, rather than relying on external suppliers.

Texas Union Gas and Electric Provides Utilities for Three Counties