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

[Shaliza khawaja]

To gain more control over its supply chain and reduce production cost
For example, a chocolate manufacturer might buy a cocoa farm to secure a steady supply of cocoa beans
this helps them avoid supply delay or price increase, keeping production smooth, this can aslo improve products as manafactures sets the standards In the long run business can increae its profit margins as it save money t has to pay to the supplier

[abdurrehman waseem]

KN: Backward vertical integration means taking over or merging with suppliers to gain control over inputs.
App: A car company like Toyota buying a steel supplier ensures steady access to raw materials.
An: This reduces supply delays, improves quality control, and lowers costs. It also gives the manufacturer more bargaining power and independence from suppliers.

[Areeba Arshad]

First advantage:
[KN] Backward vertical integration happens when a business takes over or merges with one of its suppliers.
[APP] For example, a car manufacturer might buy a tyre company to control the production of its own tyres.
[AN] This guarantees a steady and reliable supply of essential components, prevents production delays that could stop car assembly and helps the business maintain consistent quality and efficiency.

Second advantage:
[KN] Backward integration can also help reduce costs by removing intermediaries.
[APP] By owning the tyre supplier, the car manufacturer no longer needs to pay supplier mark-ups or negotiate contracts.
[AN] This lowers overall production costs, improves profit margins on each car sold and gives the company a competitive advantage through better cost control.

[hassanalizafar]

[KN] Backward vertical integration is when a business takes over or merges with a supplier.
[APP] For instance, a car manufacturer like Toyota might buy a tyre company to secure its supply of tyres.
[AN] This ensures a steady supply of key components which reduces the risk of production delays that leads to more efficient manufacturing, better control over quality and competition against competitor as there resources from supplier can be delayeds hence leads to lower costs for business.

[sarah_naeem]

[KN]: One advantage is that the car manufacturer can buy it's supplier which would give him the control over the quality of the products.
[APP]: For example, if a car manufacturer buys a tyre company they can improve it's quality or supply different types of tyres to themselves for their cars.
[AN]: Thus, this guarantees the supply of tyres, prevents production delays and leads to an improved quality of product which attracts more customers and leads to customer loyalty.
[AN+]: This will further lead to increase in sales and revenue and more profit would be gained which could be reinvested to grow the business even more leading to expansion of business and long term success.

[KN]: Another advantage is that it can also help the car manufacturer by reduce in the cost.
[APP]: For example, if the car manufacturer buys its supplier they would no longer need to pay the supplier.
[AN]: Thus, this lowers the overall production cost, increases profit margin which further increases the revenue.
[AN+]: Hence, this would further lead to improved brand image, improved financial stability which also attracts more investors and further leads to a long term successful business.