Buyers enjoy bargaining power when they are willing to achieve backward vertical integration.

Question

Quizplus · Accepted Answer

Backward vertical integration refers to a situation where a buyer integrates with its supplier. In such a case, the buyer gains more control over the production process and the supplier's operations, which reduces the supplier's bargaining power. As a result, buyers that achieve backward vertical integration have increased bargaining power.

Buyers Enjoy Bargaining Power When They Are Willing to Achieve