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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

forward integration

see VERTICAL INTEGRATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
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.
[H.sub.1.]: Each of the six transaction costs, including sunk costs, marketing fit, operating fit, vertical integration, forward integration, and the number of years a business has been a part of the firm, is inversely related to a market exit decision.

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