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Forward integration is when a business integrates with a firm it sells to.
backward integration is a form of vertical integration in which firm's control of its inputs or supplies. forward integration is a form of vertical integration in which firm's control of its distribution.
Vertical integrationÊdefines theÊsupply chainÊof a company owned by that company. In forward integration a company controls distribution centers and retailers where its products are sold.
Forward integrationBackward integrationA business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its productsA form of vertical integration that involves the purchase of suppliers in order to reduce dependency.
gul ahmed
effective organization
Vertical - Expansion of a business by buying out suppliers of commodities (required to create your product)Horizontal - Expansion of a business by buying out competition (who create a similar product)
Backward vertical integration is whereby an organisations gains ownership and power over it's suppliers. This is common in industries where costs are low and certainty is vital in maintaining competitive advantage. This strategy can be effective if current suppliers are unreliable, too costly and incapable of meeting the needs of an organisation. Forward vertical integration is whereby an organisation gains ownership and power over it's distributors and retailers. Examples can be the establishment of websites that sell directly to the consumer and therefore cutting the middle man. This strategy can be effective if distributors are unreliable and have high profit margins and incapable of serving the consumer.
tang ina nyo ! ang bobo nyo .
i don't know if this is meant to say backwards horizontal integration but i know what backwards vertical integration is whether its the same thing or not. Backwards vertical integration is where one business further forward in the chain of production buys another firm further back in the chain ie Tertiary takes over primary eg retailer takes over supplier.
refers to vertical integration, that is, a company takes over certain stages upstream (Backward) or downstream(Forward) from its position in the supply chain. A steel manufacturing company that wants to integrate backwards would therefore buy the ore mine. refers to vertical integration, that is, a company takes over certain stages upstream (Backward) or downstream(Forward) from its position in the supply chain. A steel manufacturing company that wants to integrate backwards would therefore buy the ore mine.
Forward integration is when the manufacturer of a product has direct control of the distribution of it. An example is the manufacturer creates a product and sells it directly to the consumer without using a distributor.