forward integration

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 ?
As forward integration of its soon-to-be-commissioned sebacic acid project in the Duqm free zone of the country, Sebacic Oman has proposed the construction a bio-based nylon project.
In addition, Sebacic Oman plans to set up a 10,000 tonne per annum-capacity project to produce bio-nylon (nylon 6-10 and nylon 10-10) as a forward integration of the sebacic acid project with a capital expenditure of $250 million.
Sebacic Oman SAOC plans to build a bio-based nylon project as forward integration of its soon-to-be-commissioned sebacic acid project in the Duqm free zone in Oman.
While talking to the media Hassan also said "with the help of the largest network of trained sales and technical staff in the lubricant industry, Hi-Tech Lubricants Limited has expanded its operations by getting one step closer to the customers by forward integration through HTL Express Centers.
According to different integration directions, the vertical integration can be divided into forward integration and backward integration: the forward integration refers to the way of integrating along output direction or product sales direction; and the backward integration refers to the way of integrating along production investment or raw material supply direction.
A very important element of the joined Orpic -- OTI business strategy, is the forward integration to end users, e.
Commitments should be made to drive forward integration and improve public health through the development and implementation of policies to create the right conditions to help people make healthier lifestyle choices.
Strategy of forward integration into home textile has been the game changer for Indo Count Industries," says Rajesh Kothari, Managing Director of AlfAccurate Advisors, who has been an investor in Indo Count Industries since last October.
Moreover, the company is extending its forward integration in menthol to include specialty-cooling substances, which are seeing increased use in combination with menthol-based products.
Revenues from forward integration into co-generation are considered sustainable and provide impetus to the company's profitability.
This business expansion plan is the part of our forward integration strategy.
Products, Types, Forward Integration, Channels, Capabilities, Customer Segments, Geography, Backward Integration, Technology .

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