23 Explain the difference between forward and backward vertical integration.

[Sir Afzal Shad]

23 Explain the difference between forward and backward vertical integration.[3]
Hint: Backward is buying a supplier (earlier stage) > E.g., a baker buying a flour mill.
Hint: Forward is buying a customer/distributor (later stage) > E.g., a baker buying a chain of sandwich shops.

[Aarib Saad]

(KN)Forward vertical integration is when a business merges or takes over a distributor of it's products, where as backward vertical is when the business takes over or merges with it's supplier.
(APP)For instance, for a bread producer, taking over a farm will be backwards vertical, whereas taking over a grocery store will be forward vertical.
(AN)Backward Vertical will allow the business to be able to maintain consistent quality, which will help and create brand image for good quality, whereas forward vertical will give the business better reach over the market, allowing to increase it's consumer base.

[shamaim shakeel]

KN)
Forward vertical integration means when a business joins or buys another business that is closer to the customer.
Backward vertical integration means when a business joins or buys one of its suppliers.

(APP)
For example, if a clothes factory buys a shop to sell its own clothes, that is forward integration. But if the same factory buys a cloth supplier, that is backward integration.

(AN)
Backward integration helps the business get better control over its raw materials and keep the quality the same.
It also saves money because the business does not need to buy from other suppliers.
Forward integration helps the business reach more customers, control selling prices, and build a strong brand in the market.

[EmmanWaseem]

Forward is buying the customer
For example a Baker buying a sandwich shop
Backward is buying the supplier
For example buying a windmill as a Baker

[Fatima ibtehaj]

[KN]Backward vertical integration is when a business takes over or merges with a supplier whereas forward vertical integration is when a business takes over or merges with a distributor or retailer.
[APP]A car manufacturer buying a tire or steel company and a car manufacturer buying a car dealership.
[AN]Thus it helps to control the supply of raw materials or components and reduce costs

[Arham Qadri]

[KN] Forward vertical integration is when a business takes over another business in the next stage of production while backward integration is when a business takes over another business in the previous stage of production.
[APP] For instance, for a bread producer, taking over a farm will be backwards vertical, whereas taking over a grocery store will be forward vertical.
[AN] Forward vertical will allow business to increase consumer base where as backward vertical will allow business to maintain consistent quality.

[Aayan Zaidi]

KN: Backward vertical integration is when a business joins with a supplier, while forward vertical integration is when it joins with a distributor or retailer.
APP: E.g a car maker buying a tyre company is backward integration, but buying a car showroom is forward integration.
AN: Backward helps control supply, while forward helps control how products reach customers.