backward integration

Ops
the building of relationships with suppliers in order to secure the supply of raw materials. Backward integration can involve taking control of supply companies and is a feature of Japanese keiretsu. It is the opposite of forward integration.

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  • backward integration — ➔ integration * * * backward integration UK US noun [U] ► a situation in which a company controls the supply of goods and services it needs by buying the company that supplies them, or by going into the same business as that company: »The… …   Financial and business terms

  • Backward Integration — A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it will result in improved efficiency and cost savings. For example, backward integration might cut transportation costs,… …   Investment dictionary

  • backward integration — /ˌbækwəd ɪntɪ greɪʃ(ə)n/ noun a process of expansion in which businesses which deal with different stages in the production or sale of the same product join together, i.e. a business becomes its own supplier ● Buying up rubber plantations is part …   Marketing dictionary in english

  • backward integration — /ˌbækwəd ɪntɪ greɪʃ(ə)n/ noun a process of expansion in which a business which deals with the later stages in the production and sale of a product acquires a business that deals with an earlier stage in the same process, usually a supplier ●… …   Dictionary of banking and finance

  • backward integration —   vertical integration in an upstream direction i.e. a company merging with or buying out a supplier …   Geography glossary

  • backward integration — See integration …   Big dictionary of business and management

  • integration — in‧te‧gra‧tion [ˌɪntˈgreɪʆn] noun [uncountable] 1. the combining of two or more organizations, activities etc so that they become more effective, make better profits etc: • The important achievement of the European Union is economic integration …   Financial and business terms

  • integration — The combination of two or more companies under the same control for their mutual benefit, by reducing competition, saving costs by reducing overheads, capturing a larger market share, pooling resources, cooperating on research and development,… …   Big dictionary of business and management

  • Backward compatibility — In the context of telecommunications and computing, a device or technology is said to be backward or downward compatible if it can work with input generated by an older device.[1] If products designed for the new standard can receive, read, view… …   Wikipedia

  • Backward differentiation formula — The backward differentiation formula (BDF) is a family of implicit methods for the numerical integration of ordinary differential equations. They are linear multistep methods that, for a given function and time, approximate the derivative that… …   Wikipedia

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