This type of vertical integration is conducted by a company advancing along the supply chain. A good exampleof forward integration would be a farmer who directly sells his crops at a local grocery store rather than to a distribution center that controls the placement of foodstuffs to various supermarkets.
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While forward integration can be a way to increase a company's control of its product and profits, there can be a danger of diluting the core.
Forward integration is colloquially referred to as "cutting out the middleman."
Forward integration is a business strategy that involves expanding a company's activities to include the direct distribution of its products.
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This type of vertical integration is conducted by a company advancing along the supply chain. A good exampleof forward integration would be a farmer who directly sells his crops at a local grocery store rather than to a distribution center that controls the placement of foodstuffs to various supermarkets.
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