'Simply cut' is a firm specialized in the cutting and polishing of rough diamonds.They are buying the rough diamonds from a South-African diamond mining company,and they are selling the cut diamonds to the jewelry makers.If 'Simply cut' wants to vertically integrate backward,they should:

Question

Quizplus · Accepted Answer

If 'Simply cut' wants to vertically integrate backward, they should start mining the diamonds themselves instead of buying them from another company. This would give them more control over the supply chain and increase their profits by cutting out the middleman. Using the polished diamonds to make jewelry or buying polished diamonds from another company would be a form of horizontal integration rather than vertical integration backward. Buying rough diamonds from another company or selling rough diamonds would not be backward integration, but rather a continuation of their current business model.

'Simply Cut' Is a Firm Specialized in the Cutting and Polishing