Backward integration can be seen in Smithfield Foods' buy of Carroll's Foods for its hog-growing talents.
In this case, firms try to control their supply chains and try to obtain raw materials directly destroying the suppliers. Such an upstream activity in the supply chain is termed Backward Integration. The term Backward is because the company carries backward in the value chain.
Buyers pose a substantial threat of backward integration—buyers demand concessions, and may encounter tapered integration.
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