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forward integration

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forward integration

Merging with, or buying, a company further down the supply chain. Examples would be a wholesaler purchasing a retailer, or a brewery buying a chain of pubs. Forward integration gives a company more control over the supply chain to the point of sale. A brewery that purchases a chain of pubs can decide which beers are sold in the pubs, thereby exercising control over their competition. However, lack of competition can give rise to complacency and consumers do not always react positively to this kind of control of the market.



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? Mentioned in ? References in periodicals archive
 
Ashland saw the success of forward integration with coldbox, driving the casting design, as opposed to back ward integration, driving casting production.
Advocating engineered castings from a unique perspective: leading his ... by Spada, Alfred / Modern Casting
In explaining Dow's forward integration into molding, Rogowski says it puts the company in close contact with Ford and such associated suppliers as Visteon and Faurecia.
Dow automotive plays new role as a custom injection molder. (Your ... by Plastics Technology
This classic case of forward integration will force consolidation in that level of the chain.
Supply chains: make it or break it by Karmarkar, Uday S. / Chief Executive (U.S.)
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