22 Analyse advantages for a car manufacturer of backward vertical integration.

[Sir Afzal Shad]

22 Analyse two advantages for a car manufacturer of backward vertical integration.[8]
Hint: Buys a supplier, e.g., a tyre company > This guarantees the supply of tyres > Prevents production delays and gives control over quality.

[Aarib Saad]

(KN)It will help with quality control.
(APP)For instance, if a car manufacturer takes over a tire manufacturer, it will ensure that the tires remain durable and reliable.
(AN)Thus, this will ensure that the business is able to have consistent quality, meeting the expectations of customers, which improve brand image, leading customer retention for the long run.

[shamaim shakeel]

[KN] Backward vertical integration happens when a business buys or merges with one of its suppliers. This helps the business gain more control over its supply chain and reduce costs.
[APP] For example, a car manufacturer might buy a tyre company to make sure it always has enough tyres for its vehicles.
[AN] This guarantees a steady supply of tyres, prevents production delays, and gives better control over quality, helping the business operate more efficiently and increase profit.

[EmmanWaseem]

It is buying of a supplier
For example, they buy tyres from the supplier so it is in a better quality
Ensures that they get the right thing un higher quality

[Fatima ibtehaj]

[KN]The business gains a larger share of the market by combining with a competitor, giving it more power to set prices and influence customers.
[APP]For example, if Toyota buys a steel supplier, it can guarantee a constant flow of steel for its factories.
[AN]This helps maintain production efficiency and consistent car quality leading towards a rise in brand image leading towards a larger consumer base and lower economies of scale.

[Arham Qadri]

[KN] Help the quality control.
[APP] For example a car manufacturer also takes control over the tyer manufacturer, so he will keep sure that the tyer remains reliable.
[AN] This will ensure that the business will have good quality which will be meeting the demands of customers hence improving the businesses/brands image.

[Aayan Zaidi]

KN: Backward vertical integration is when a business takes control of its suppliers to get raw materials or parts directly.
APP: E.g a car manufacturer buying a tyre or steel company ensures steady supply of materials.
AN: This helps lower costs, improve quality control, and reduce dependence on outside suppliers.