How may the differences between backward integration and forward integration be shown via examples?
How may the differences between backward integration and forward integration be shown via examples?
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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How may the differences between backward integration and forward integration be shown via examples?
Expert Solution
Step 1
Backward integration is different from forward integration:
• Forward integration is the process by which a firm takes control of the business operations that are the head of the value chain, as opposed to backward integration, in which a company takes control of the operations that were at the tail end of the value chain.
• Forward integration involves a corporation merging with distributors, while backward integration involves a company merging with a supplier or manufacturer.
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