oboloo Glossary

Forward Integration

oboloo Glossary

Forward Integration

Forward integration is a strategy used by businesses to gain greater control over the production and distribution of their products and services. It involves taking control of processes or activities further up in the supply chain, such as the procurement of raw materials, manufacturing, or even marketing and sales. By obtaining ownership or control of these upstream operations, a business can pursue increased product differentiation and cost savings, as well as enhanced brand loyalty. Ultimately, forward integration allows businesses to expand their influence within the industry and better meet customer needs.