Forward Integration

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DEFINITION of 'Forward Integration'

A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.

INVESTOPEDIA EXPLAINS 'Forward Integration'

A good example of forward integration is when a farmer sells his/her crops at the local market rather than to a distribution center.

RELATED TERMS
  1. Backward Integration

    A form of vertical integration that involves the purchase of ...
  2. Horizontal Integration

    The acquisition of additional business activities that are at ...
  3. Vertical Integration

    When a company expands its business into areas that are at different ...
  4. Strategic Management

    The management of an organization’s resources in order to achieve ...
  5. Performance Management

    The management of employees, departments, and organizations to ...
  6. Social Enterprise

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