Final answer:
Forward integration refers to a company acquiring or developing capabilities that bring it closer to the end customer which could involve owning its distribution channels. it is distinct from outsourcing, which involves hiring outside contractors to complete tasks and offshoring, which is moving operations to other countries.
Step-by-step explanation:
The term forward integration refers to a strategy where a company acquires or develops capabilities toward distribution, or even customers. This strategy might involve the company taking control of the distribution process, such as owning a retail outlet, or by directly interacting with customers rather than going through a third-party distributor.
Contents loaded around this topic often refer to different types of integration strategic movements in business such as backward integration, where a company acquires control over its suppliers, or outsourcing, where a company contracts another firm to perform tasks that could have been done internally. Another related term is offshoring, which describes transferring some of a company's operations to another country, often to access cheaper labor markets. These various strategies are part of how businesses adapt to changing markets and labor conditions, influencing where and how they operate globally.