forward integration

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Forward Integration

A business model whereby a company takes direct control of how its products are distributed. For example, a company may market its products directly to consumers rather than selling them to a retailer. Alternatively, forward integration may involve the company simply acquiring the retailer. See also: Backward integration.

forward integration

see VERTICAL INTEGRATION.

forward integration

the joining together in one FIRM of two or more successive stages in a vertically related production/distribution process; for example, flour millers acquiring their own outlets for flour, such as bakeries. The main motives for forward integration by a firm are to secure the market for the firm's output and to obtain cost savings. See VERTICAL INTEGRATION, BACKWARD INTEGRATION.
References in periodicals archive ?
Vertical integration, forward and backward, can help optimize the supply chain and earn higher profits.
While there are many examples, some might include functional capabilities, products and technologies, metal types, channels and geographies, backward integration, forward integration and customer segments.
Vertical integration, forward and backward, is necessary to optimize the supply chain and earn higher margins or sideward integration to increase the product line.

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