Forward Integration


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.


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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.

  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. Efficiency

    A level of performance that describes a process that uses the ...
  5. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  6. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
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