Saturday, March 05, 2005

Forward & Backward Integration

Forward Integration
The expansion of a business' products and/or services to related areas in order to more directly fulfill the customer's needs.

Backward Integration
Acquiring ownership of one's supply chain, usually in the hope of reducing supplier power and thus reducing input costs.

Source: InvestorWords
http://www.investorwords.com/383/backward_integration.html

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