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. Vertical Integration

    When a company expands its business into areas that are at different ...
  2. Backward Integration

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

    The acquisition of additional business activities that are at ...
  4. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...
  5. Protected Cell Company (PCC)

    A corporate structure in which a single legal entity is comprised ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
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