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Forward Integration

 
Investment Dictionary: 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.

Investopedia Says:
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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Marketing Dictionary: forward integration
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Acquisition of or expansion into a distribution channel. For example, a book publisher who acquires or launches a direct-mail book club can increase profit margins and sales volumes on books sold through the club channel. See also backward integration; horizontal integration.

 
 

 

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Marketing Dictionary. Dictionary of Marketing Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more