18 Differentiate between backward vertical & forward vertical growth strategies of a business. [6]

[Sir Afzal Shad]

Q18 Differentiate between backward vertical & forward vertical growth strategies of a business. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Kumail Alvi]

[KN] Control and Dependency
[AN] Backward Vertical Integration allows a business to have more control over its supply chain, reduce dependency on suppliers, and potentially lower costs.
Forward Vertical Integration gives a business more control over its distribution channels, brand image, and customer experience, but it may require significant investments.
[AN+] Backward Vertical Integration Has Control Over the Supply Chain whereas
Forward Vertical Integration Has Control Over Distribution Channels.

[KN] Market Competition
[AN] Backward Vertical Integration can reduce competition with other businesses in the supply chain but may face competition from other integrated suppliers.
Forward Vertical Integration can reduce competition in distribution but may lead to competition with existing retailers or distributors.
[AN+] Backward Vertical Integration Reduces Competition in the Supply Chain and Increases Competition from Integrated Suppliers whereas Forward Vertical Integration Reduces Competition in Distribution and Increases Competition with Existing Retailers or Distributors:

[Syed Raza]

[KN] operations of firm
[AN] Backward vertical growth, also known as backward integration, involves a business expanding its operations by moving upstream in the supply chain. This means the company acquires or gains control over activities or entities that supply it with raw materials, components, or essential inputs. while Forward vertical growth, also known as forward integration, involves a business expanding its operations by moving downstream in the supply chain.
[AN+] thus backward moves the operations upwards but in forward the operations moves downwards

[KN] Control
[AN] In backward vertical growth, the business gains more control over its supply chain by owning or controlling the sources of raw materials or intermediate goods. This allows the company to secure a stable supply and reduce dependency on external suppliers while n forward vertical growth, the business gains more control over its distribution and customer relationships. This allows the company to manage its product's availability, pricing, and quality at the point of sale.
[AN+] thus all the chain is being controlled in backward as well as foward

[Salman Khalid]

[KN] Control
[AN] In backward vertical growth, the business gains more control over its supply chain by owning or controlling the sources of raw materials or intermediate goods. .
[AN+]This allows the company to secure a stable supply and reduce dependency on external suppliers while n forward vertical growth, the business gains more control over its distribution and customer relationships. This allows the company to manage its product's availability, pricing, and quality at the point of sale

[KN] Market Competition
[AN] Backward Vertical Integration can reduce competition with other businesses in the supply chain but may face competition from other integrated suppliers. Forward Vertical Integration can reduce competition in distribution but may lead to competition with existing retailers or distributors.
[AN+] Backward Vertical Integration Reduces Competition in the Supply Chain and Increases Competition from Integrated Suppliers whereas Forward Vertical Integration Reduces Competition in Distribution and Increases Competition with Existing Retailers or Distributors:

[Talha Asim]

(Kn)path of expansion (an) in forward verticle the business is in the same industry but goes up the stage of production whereas in backward vertical the business is also in the same industry but goes behind in the stage of production (an+) for eg a clothing manufacturer in forward vertical may open its own retail outlet and in backward vertical may start its iwn extraction of raw materials
(Kn) ease of availability (an) in backward vertical the raw materials will be extracted by oneself and thus be easily available but in forward vertical the even if finished good are available its usefulness mainly depends on the sales as per where the outlet is located (an)thus availability in terms of raw materials is less imp since sales wont even be made if tbe wrong location is chosen

[Hadia Zia]

[KN]Different Aims.
[AN] Backward vertical aims to reduce supply chain risks , quality issues etc however forward vertical aims increase companies market presence or to ensure that products or services reach out to customers efficiently.
[AN+] Thus BV involves moving up the supply chain to control suppliers and raw materials but FV involves moving down the supply chain to control distributors, retailors etc.

[KN] Examples.
[AN] A bakery that purchases a wheat processor or a wheat farm is an example of BV however a coffee company owning its chain of coffee shops is an example of FV.
[AN+] Thus this shows that the difference between the both BV & FV is the choice which depends on business type, its objectives etc.

[Humzah Zafar]

[KN]More control
[AN]In backward integration a business gains more control over the suppliers of raw materials
[AN+]This allows them to have sustained supply and manage their business smoothly

[KN]less competitors
[AN]Due to backward vertical integration being a niche, less businesses operate in this area
[AN+]This can allow the business to set relatively high prices

[Maham fatima]

[kn]Backward vertical integration is merging with a business in the same industry at a previous stage however, forward vertical integration is merging with a business in the same industry at the next stage
[AN]In vertical backward integration brand image is improved through high quality of supplies however in forward vertical integration brand image can be improved through consumer profiling
[AN]As a result customer service is improved


[KN] In forward vertical integration a business has more access to the outlet however in backward vertical integration however in backward vertical integration a business has more access to supplies of the merged business
[AN] therefore in forward vertical integration a business can have more exclusivity in promotions and attracting customers whereas in backward integration business can become more competitive and set competitive prices as well

[Abbas17]

(KN) Control
(AN) In backward vertical growth, the business gains more control over its supply chain by owning or controlling the sources of raw materials or intermediate goods. .
(AN+) This allows the company to secure a stable supply and reduce dependency on external suppliers while n forward vertical growth, the business gains more control over its distribution and customer relationships. This allows the company to manage its product's availability, pricing, and quality at the point of sale

(KN) Market Competition
(AN) Backward Vertical Integration can reduce competition with other businesses in the supply chain but may face competition from other integrated suppliers.
Forward Vertical Integration can reduce competition in distribution but may lead to competition with existing retailers or distributors.
(AN+) Backward Vertical Integration Reduces Competition in the Supply Chain and Increases Competition from Integrated Suppliers whereas Forward Vertical Integration Reduces Competition in Distribution and Increases Competition with Existing Retailers or Distributors

[Syed Mustafa Ali]

(KN) Control
(AN) In backward vertical growth, the business gains more control over its supply chain by owning or controlling the sources of raw materials or intermediate goods. .
(AN+) This allows the company to secure a stable supply and reduce dependency on external suppliers while n forward vertical growth, the business gains more control over its distribution and customer relationships. This allows the company to manage its product's availability, pricing, and quality at the point of sale

(KN) Market Competition
(AN) Backward Vertical Integration can reduce competition with other businesses in the supply chain but may face competition from other integrated suppliers.
Forward Vertical Integration can reduce competition in distribution but may lead to competition with existing retailers or distributors.
(AN+) Backward Vertical Integration Reduces Competition in the Supply Chain and Increases Competition from Integrated Suppliers whereas Forward Vertical Integration Reduces Competition in Distribution and Increases Competition with Existing Retailers or Distributors

DETECTED PLAGARISM OF ABBAS. SAME AS SALMAN