Forward Integration

Forward Integration

Published on 16 November 2022

In class animation group assignment on forward integration.

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CA
Transcript
00:00
Forward Integration By Madison Graham and Chason Ashworth
00:06
What is forward integration?
00:08
Forward integration is a business strategy that involves expanding a company's activities to include the direct distribution of its products.
00:13
Let's say you own a farm.
00:18
Your produce is your supply
00:26
Instead of using a distributor who would control where your product went
00:28
You have decided to "cut out the middle man" and sell directly to your local grocery store
00:37
You control the distribution of your own product ...
00:39
And remove the cost of paying someone else to do it.
00:40
This, in a nutshell, is forward integration.
00:46
Why is forward integration important?
00:54
Forward integration is a strategic process that can help a company improve efficiency and increase profits. By implementing forward integration, a company gains more control over its product and its delivery to consumers.
01:06
What are the benefits of forward integration?
01:11
Increase the company’s market share Gain control over distribution channels Competitive advantage Create barriers to potential competitors
01:20
What are the risks associated with forward integration?
01:24
Bureaucratic inefficiencies Failure to realize synergies between the companies High costs
01:32
The end.