When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.

1. Forward Vertical Integration - Integration strategies
Corporate Level Strategies

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Integration strategies

4. Integration strategies
• It is done where the
company attempts to
widen the scope of its
business definition in
such a manner that it
results in serving the
same set of customers.
The alternative
technology of the
business undergoes a
change.

5. Integration strategies
• It is combing activities
related to the present
activity of a firm. Such a
combination may be done
through value chain. A value
chain is a set of interrelated
activity performed by an
organization right from the
procurement of basic raw
materials down to the
marketing of finished
products to the ultimate
customers.

6. Vertical Integration
• When pursuing a vertical
integration strategy, a
firm gets involved in new
portions of the value
chain. This approach can
be very attractive when a
firm’s suppliers or buyers
have too much power
over the firm and are
becoming increasingly
profitable at the firm’s
expense.

7. Examples of Vertical Integration
• Oil companies like
ConocoPhillips can be
involved in all stages of
the value chain, including
crude oil exploration,
drilling for oil, shipping oil
to refineries, refining
crude oil into products
such as gasoline,
distributing fuel to gas
stations, and operating
gas stations.

8. Forward Vertical Integration
• When pursuing a vertical
integration strategy, a
firm gets involved in new
portions of the value
chain. This approach can
be very attractive when a
firm’s suppliers or buyers
have too much power
over the firm and are
becoming increasingly
profitable at the firm’s
expense.

9. Examples of Forward Integration
• Disney has pursued
forward vertical
integration by operating
more than three hundred
retail stores that sell
merchandise based on
Disney’s characters and
movies. This allows
Disney to capture profits
that would otherwise be
enjoyed by another store.