What is a reason for industry members to integrate backward according to supplier competitive pressures?

Integrating backward refers to a company's strategy of acquiring or merging with suppliers to gain more control over its supply chain. One of the significant reasons for industry members to pursue this strategy is to enhance their independence from suppliers. This independence allows businesses to mitigate risks associated with supplier power, such as price increases or supply disruptions. By integrating backward, a company can secure critical resources or inputs, leading to greater operational stability and reduced vulnerability to supplier negotiations.

Enhancing independence can also result in better negotiating positions for the company, as it reduces reliance on external suppliers, enabling more strategic decisions regarding production and resource allocation. This approach fosters a more sustainable competitive advantage as companies can maintain a consistent quality and cost structure without being heavily influenced by suppliers' demands or market fluctuations. This strategic move ultimately supports tighter control over the production process and can lead to improved overall efficiency and profitability.