For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop$-$off in quality.

needs to have a wide product line, so it can supply parts and components for many products.

must first be a proficient manufacturer.

must have excess production capacity so that it has an ample in$-$house ability to undertake additional production activities.

should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D$.$