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

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  3. Horizontal Integration

    The acquisition of additional business activities that are at ...
  4. Path To Profitability (P2P)

    A clearly defined route to profitability as described in a business ...
  5. Value Of Risk (VOR)

    The financial benefit that a risk-taking activity will bring ...
  6. Business Judgment Rule

    A legal principle which grants directors, officers, and agents ...
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  3. How does the market share of a few companies affect the Herfindahl-Hirschman Index ...

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  4. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  5. How does transfer pricing help business?

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  6. Are there any practical differences between a wholly owned subsidiary and a regular ...

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