The Spanish clothing retail chain Zara uses a backward integration strategy as it produces many of its products in-house by producing its own products.

Question

Quizplus · Accepted Answer

Backward integration refers to a situation where a company produces its own inputs or raw materials. Zara uses backward integration because it produces many of its products in-house by producing its own fabrics, designs, and cuts. This helps the company to have more control over the production process and ensure timely delivery of products.

The Spanish Clothing Retail Chain Zara Uses a Backward Integration