forward integration
[ˈfɔrwərd ˌɪntɪˈɡreɪʃən]
nounpl: forward integrations
integração para frente
1. A business strategy where a company expands by acquiring or controlling the distribution channels or retailers that sell its products directly to consumers
The manufacturer pursued forward integration by opening its own retail stores to sell directly to customers.
O fabricante perseguiu a integração para frente ao abrir suas próprias lojas de varejo para vender diretamente aos clientes.
2. The process of moving downstream in the supply chain to gain control over distribution, sales, or customer relationships
Forward integration allowed the company to eliminate middlemen and increase profit margins.
A integração para frente permitiu que a empresa eliminasse intermediários e aumentasse as margens de lucro.
Forward integration is a key concept in business management and strategy courses in both Brazil and the USA. In Brazil, companies like Vale (mining) and Natura (cosmetics) have used forward integration strategies to control their distribution channels. This term is technical and primarily used in corporate, academic, and financial contexts rather than everyday conversation.
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