Smithfield foods is one of the world's largest pork processors. Their purchase of carroll's foods for its hog-growing facilities is an example of?

Respuesta :

Backward integration can be seen in Smithfield Foods' buy of Carroll's Foods for its hog-growing talents.

Why is it named backward integration?

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.

What is the threat of backward integration?

Buyers pose a substantial threat of backward integration—buyers demand concessions, and may encounter tapered integration.

To learn more about the backward integration visit the link

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