Backward vertical integration can produce:

Question

Quizplus · Accepted Answer

Backward vertical integration involves a company taking control of its supply chain by acquiring or merging with its suppliers. This can lead to a differentiation-based competitive advantage when the activities of the suppliers enhance the performance of the final product. Option A is incorrect as full integration would mean the company takes over all activities instead of leaving some with key suppliers. Option B is incorrect as tapered integration would mean only some activities are consolidated in-house. Option D is incorrect as focused differentiation strategy is not related to backward vertical integration. Option E is incorrect as not all options listed are correct.

Backward Vertical Integration Can Produce