backward integration

backward integration definition - business

backward integration

Acquisition by a business of one or more of its suppliers. For example, a vehicle manufacturer might acquire an electronics company or tire manufacturer in an attempt to reduce cost or improve quality. Backward integration is a type of vertical integration. Compare forward integration.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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