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Backward Integration
(redirected from Backward Vertical Integration)

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Backward Integration
A business model whereby a company takes direct control of how its products are supplied. For example, a company may buy another company that previously supplied its raw material. That is, a butcher may own a ranch so that he does not have to buy slaughtered animals from an outside ranch. Alternatively, backward integration may involve the butcher buying the outside ranch. See also: Forward Integration.


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Gross margins of the company are expected to improve because of the backward vertical integration.
Because of the fact that the magnetic resonance business is so concentrated, its backward vertical integration strategy seems quite appropriate.
BACKWARD-VI = Backward vertical integration of the unit (degree to which it sells to other units of the firm).
 
 
 
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