In forward vertical integration,a company becomes its own ________,while in backward integration the company is its own ________.

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In forward vertical integration, a company starts to control its distribution channels and becomes its own distributor. Examples of forward integration include a manufacturer that invests in the retail industry, a brewery that opens its own pubs and a clothing manufacturer that expands its business to retail stores. In other words, the company is becoming its own customer's outlet.

In backward vertical integration, a company begins to control its supply chain and become its own supplier. Examples of backward integration include an oil company that purchases a refinery, a car manufacturer that starts producing its own steel or a bakery that buys a wheat farm. In other words, the company becomes its own supplier of raw materials, components or services needed to produce its final products.

In Forward Vertical Integration,a Company Becomes Its Own ________,While in Backward