Buyers are also powerful when they can credibly threaten backward integration. Backward integration occurs when a buyer moves upstream in the industry value chain, into the seller’s business. Walmart has exercised the threat to backward integrate by producing a number of products as private-label brands such as Equate health and beauty items, Ol’Roy dog food, and Parent’s Choice baby products. This situation is also observed in the auto-component supply industry, in which car manufacturers such as GM, Toyota, or Volkswagen have the capability to backward integrate in order to produce their components in-house if their demands for lower prices and higher product quality are not met by their suppliers. Taken together, powerful buyers have the ability to extract a significant amount of the value created in the industry, leaving little or nothing for producers.