We will be explaining forward integration and how it relates to supply chains.
00:11
1. The importance of
Forward Integration
2. The Advantages
3.The Disadvantages
00:16
#1
00:18
Importance of Forward integration
00:19
The concept of forward integration is inherently related to the concept of the supply chain. In many industries, the major components of the supply chain include raw materials, intermediate goods, manufacturing, marketing and sales, and after-sales service. An example of forward integration is a situation when a manufacturer purchases its retailer to secure control over the distribution channels.
00:29
#2
00:30
Advantages
00:31
1. Increase the company’s market share
2. Gain control over distribution channels
3. Competitive advantage
00:42
#3
00:43
Disadvantages
00:44
1. High costs
00:45
2. Failure to realize synergies between the companies
00:45
3. Bureaucratic inefficiencies
00:53
00:54
STAY TUNED
FOR NEXT WEEK'S TOPIC
00:55
Procter & Gambel
Alert
00:57
Walmart prepares to receive
shipment
01:01
Walmart gets Shipment
01:06
Procter & Gambel
sends bill
01:16
Animation Activity
featuring Forward Integration
By Carson Easton and Ryneik Mcquiter