Backward Integration Examples

Backward integration as the name suggests means that strategy of a company with the help of which it tries to secure raw materials for its products by buying or merging with the company which is supplying the raw material. Given below are some of the examples of backward integration

  1. When an oil marketing firm buys an oil refining firm
  2. When a bookseller who sells books acquires book Publisher Company
  3. A bank which sells insurance buying an insurance business
  4. An auto manufacturing company acquires some auto ancillary organization
  5. A telecom firm buying mobile handset firm

Apart from above there are many other industries where this sort of integration can happen depending on the need and objective of the corporation doing such integration.

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