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What is the difference between forward vertical and backward vertical integration?

April 26, 2017backward forward Integration vertical

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What is the difference between forward vertical and backward vertical integration?

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Forward vertical integration is whereby an organisation gains ownership and power over it’s distributors and retailers. Examples can be the establishment of websites that sell directly to the consumer and therefore cutting the middle man. This strategy can be effective if distributors are unreliable and have high profit margins and incapable of serving the consumer.