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.

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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.

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

    A horizontal integration consists of companies that acquire a similar company in the same industry, while a vertical integration ... Read Full Answer >>
  2. How has Google's operations strayed from its original mission statement?

    Google's (GOOG) mission statement has been the same since its inception in 1998: "Organize the world's information and make ... Read Full Answer >>
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    The difference between product bundling and product lines is a product line is a group of related products manufactured by ... Read Full Answer >>
  4. What are some examples of businesses that use market segmentation?

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