Backward integration can also spare a firm the uncertainty of being dependent
on suppliers of crucial raw materials or support services, and it can
lessen the firm's vulnerability to powerful suppliers intent on raising prices at
every opportunity. Stockpiling, fixed-price contracts, or the use of substitute
inputs may not be attractive ways for dealing with uncertain supply conditions
or economically powerful suppliers. When this is the case, backward integration
can be an organization's most profitable and competitively secure option
for accessing reliable supplies of essential materials and support services at
favorable prices.