synergies in backward intregration

This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.

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November 10, 2016 at 6:06 am #348282
Vipin
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suppose a car manufacturer has bought tyre manufacturing company. will it help in synergy in any process or an economies in a process?? I don’t see any advantages in terms of economy of operations or synergy of operations.
November 10, 2016 at 7:49 am #348296
Ken Garrett
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Might help with coordination between car and tyre manufacturing. However, with modern systems and links between firms synergy is unlikely. Hence backward integration not really in fashion at the moment.
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