Ford once supplied every part to its automobiles,except the rubber (though it tried to grow the trees,to no avail).This is an example of
A) forward vertical integration.
B) unrelated diversification.
C) backward vertical integration.
D) horizontal integration.
E) a defender strategy.

Question

Quizplus · Accepted Answer

Backward vertical integration refers to a company acquiring or controlling another company that is part of its supply chain. In this case, Ford acquiring suppliers for the parts needed to build their automobiles is an example of backward vertical integration. This allows Ford to have more control over its supply chain and ensure the quality and availability of the parts it needs to build its automobiles.

Ford Once Supplied Every Part to Its Automobiles,except the Rubber