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The Daily Insight Hub

Is Netflix forward or backward vertical integration?

Author

Daniel Santos

Updated on January 14, 2026

Netflix is one of the most significant backward vertical integration examples in the entertainment industry. In the past, Netflix was established at the end of the supply chain because it was a platform to distribute films and TV shows created by other content creators.

Is Starbucks backward integration?

Starbucks has successfully integrated backwards through its company owned stores that sell food, drink, coffee beans, appliances and accessories.

What is backward vertical growth?

Backward vertical integration – when the business takes over a company at an earlier stage in the production process for example its supplier/source of goods and materials. Advantages. Disadvantages.

What is the difference between horizontal and vertical integration?

Horizontal integration is when a business grows by acquiring a similar company in their industry at the same point of the supply chain. Vertical integration is when a business expands by acquiring another company that operates before or after them in the supply chain.

Which of the following is the best example of forward integration?

A good example of forward integration would be a farmer who directly sells his crops at a local grocery store rather than to a distribution center that controls the placement of foodstuffs to various supermarkets.

Which of the following is the best example of vertical integration quizlet?

A good example of vertical integration is: a crude oil refiner purchasing a firm engaged in drilling and exploring for oil. A vertical integration strategy can expand the firm’s range of activities: backward into sources of supply and/or forward toward end users.

Which is an example of backward integration in business?

The Company can cut its costs by merging with its suppliers and maintain quality standards. Suppose there is a Car Company, XYZ, which gets a lot of raw materials like iron and steel for making cars, rubber for seats, pistons, engine, etc. from various suppliers.

Which is the best example of vertical integration?

Vertical Integration – Example #1 1 One of the most prominent examples of the company with sustained success in Vertical Integration is the World’s leading… 2 Similarly, the company has also done forward integration by opening its retail stores popularly known as Apple Stores to… More …

How does Apple use backward vertical integration in its products?

Its software products are placed into electronic devices and computer systems manufactured and assembled by Apple using hardware and components also manufactured by the company. Apple’s use of backward vertical integration has been a great success and allowed the company to advance its new products and technology at a more rapid pace.

When do we talk about backward integration in supply chain?

When we talk about backward integration, we also name it as vertical integration, and that is achieved when the company includes different segments of the supply chain.