Forward Integration

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What is 'Forward Integration'

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

BREAKING DOWN '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.

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RELATED FAQS
  1. How do I calculate the Macaulay duration of a zero-coupon bond in Excel?

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  2. When does it makes sense for a company to pursue vertical integration?

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  3. What is the best reason to pursue a backward integration?

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  4. What are the major costs to a firm when pursuing vertical integration?

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