Definition of Forward Integration



Forward integration is a business strategy where businesses take control of their supply chain down the line. Businesses cut down its distributors or retailers and start selling the goods or services directly to their customers.

 


Forward Integration concept takes boom in 1990 with the advent of the Internet when companies start selling their products online. By adopting this strategy, companies can take more control of its market and make more profits by cutting its suppliers, manufacturers or distributors.

 

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