Forward Integration

Concept summarized by Sam Mishra, MBA (MIT Sloan)

The acquisition by a company of outside businesses involved with the sales and distribution of a company’s products and services. Broadly speaking, forward integration involves the downstream expansion of a company’s demand chain. An iron ore mining company acquiring a steel plant to which it was previously supplying iron ore is a specific example of Forward Integration.  

 

Also see backward integration, and vertical integration.






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