23 Explain the difference between forward and backward vertical integration.

[Shaliza khawaja]

Backward integration is when a business takes over or merges with its suppliers and Forward integration is when it takes over or merges with its distributors or retailers
for example a furniture manufacturer buying a wood supplier is backward integration, while buying a furniture retail store is forward integration.
bachwards integrations helps the business secure better raw material and forwrd integration helps the business control how the product is sold, improving brand image, both ways cut cost as you are cutting out the middle man and gaining more control
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[abdurrehman waseem]

KN:Forward integration means merging with or taking over businesses at a later stage of production, while backward integration means moving towards suppliers.
App: For instance, a clothing producer buying a retail chain is forward integration; buying a fabric mill is backward integration.
An: Forward integration improves distribution and customer contact, whereas backward integration secures raw materials and reduces input costs.
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[Mustafa Khan]

kn]forward vertical integration is when a business merges with the distributor of the finished product and backward vertical integration is when the business merges with the suppliers of the raw material.
app]for example, chocolate compony merging with the the farms of cocoa powder is backward vertical integration and them merging with the grocery store is forward vertical integration.
an]This means the business gains greater control over its operations BVI helps reduce dependency on suppliers and ensures a steady supply of raw materials, while FVI allows the business to manage how its products reach customers, leading to profit maximization.
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[sarah_naeem]

[KN]: Forward vertical integration is when a business merges or takeovers businesses at the later stage of production in the same industry whereas backward vertical integration is when the business merges with the suppliers of the raw material.
[APP]: For example, Cadbury chocolate company merging with cocoa farms in Africa is backward vertical integration and merging them with the grocery stores is forward vertical integration.
[AN]: Thus, both are important and as forward vertical integration helps control distribution and sales which would secure sales, increase market share or leads to higher revenue which would strengthen the brand image while backward vertical integration helps control supply and production materials and since it has control over raw materials it can improve quality of product which would lead to more customers and customer loyalty and can charge higher prices as customers would be willing to pay higher prices for better products which would increase their revenue and also lead to long term growth of business.

[hassanalizafar]

[KN]Forward vertical integration is when a business takes over a distributor while backward vertical is when it takes over a supplier.
[APP] For instance, a bread producer taking over a farm is backward vertical, and taking over a grocery store is forward vertical.
[AN] Forward vertical gives better market control which provide more customers hence more/higher sales where as backward vertical ensures steady supplies to factor on time with no quality concerns hence can improve brand image.