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Mar 30, 2021 · Forward integration is a business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are...
- Will Kenton
- 2 min
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What is forward integration?
What is vertical integration?
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What is the difference between reverse integration and forward integration?
What is Forward Integration? Forward integration is a form of vertical integration in which a company moves further in the direction of controlling the distribution of its products or services.
Feb 20, 2023 · Forward integration, a form of vertical integration, is when a strategic acquirer moves downstream, which means that the company becomes closer to interacting directly with its end customers. Forward integration represents strategic acquisitions completed in order to gain more control over the later stages of the value chain.
Forward integration is a vertical integration strategy in which a company expands its operations to control its products’ direct distribution or supply. This strategy is usually employed by manufacturers who want greater control over their product’s supply chain, from production to point of sale.
Vertical integration is when a firm extends its operations within its supply chain. It means that a vertically integrated company will bring in previously outsourced operations in-house. The direction of vertical integration can either be upstream (backward) or downstream (forward).
Jul 16, 2024 · Forward Integration: A company expands control of the distribution process and sale of its finished products with forward integration.