Forward Integration

AAA

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. Backward Integration

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

    The acquisition of additional business activities that are at ...
  3. Vertical Integration

    When a company expands its business into areas that are at different ...
  4. Protected Cell Company (PCC)

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

    Shareholders who hold their shares directly with a company.
  6. Plant Patent

    An intellectual property right that protects a new and unique ...
Related Articles
  1. Entrepreneurship

    Finding The Best Buyer For Your Small ...

  2. Professionals

    The Lucrative World Of Third-Party Marketing

  3. Options & Futures

    The Basics Of Mergers And Acquisitions

  4. Top fund-raising strategies for nonprofit organizations
    Taxes

    Top Fund-Raising Strategies For Nonprofits

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center