19. Question 19 options: According to ................ theory, by vertically integrating backward to gain control over the source of raw material, a firm can raise entry barriers and shut new competitors out of an industry.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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19.

Question 19 options:

According to ................ theory, by vertically integrating backward to gain control over the source of raw material, a firm can raise entry barriers and shut new competitors out of an industry.
 
 
 
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Step 1 Introduction

Backward integration is a business strategy in which a firm buys or gains control over some other company that supplies the raw materials or any products needed to complete the production process. It involves merging or buying other company to improve efficiency and save costs. This strategy is capital intensive and is done to gain control over the crucial operations of the company such as manufacturing.

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