What term describes the strategy of a tertiary business starting to manufacture goods?

The strategy you’re referring to, where a tertiary business begins to manufacture goods, is known as Backwards Integration. This approach involves a company moving up the supply chain into the production stage, which allows it to gain control over the inputs and raw materials needed for its operations. By starting to manufacture goods, the business can reduce dependence on external suppliers, potentially lower costs, and improve product quality and consistency. This integration enhances operational efficiency and can lead to a stronger market position by creating a more seamless process from production to retail.

In contrast, Horizontal Integration relates to acquiring or merging with competitors at the same level of the supply chain, enabling the company to increase market share rather than moving into production. Forwards Integration involves moving down the supply chain, such as a manufacturer deciding to open retail outlets, which is different from starting manufacturing. Diversification refers to entering into different markets or product lines, thereby expanding the business portfolio, rather than focusing solely on manufacturing within the existing operations.