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 Definitions

Backward Integration

A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it will result in improved efficiency and cost savings. For ...
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Horizontal Integration

The acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external ...
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Vertical Integration

When a company expands its business into areas that are at different points of the same production path.
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