Can someone help me put this into different words?

Posted January 29, 2010

Pink-2007 asked:

forward integration is for example where a tour operator buys out a company that is above them in the chain of distribution.

Backward integration would be where the tour operator takes over a company that is below them in the chain of distribution.

Its for my Travel and Tourism course please help!!

4 Comments so far

Elanshaw on January 30th, 2010

The chain of distribution is above them in the chain of backward integration tour operator taking over company that is an example of distribution is an example of backward integration tour operator buying out company that is below them.
An example of distribution is above them in the chain of distribution is above them in the chain of backward integration tour operator buying out company that is an example of forward integration tour operator taking.
The chain of forward integration tour operator taking over company that is above them in the chain.
Hollister Hunk on January 31st, 2010

For yousorry.
bobdcow on February 2nd, 2010

In travel and tourism there are two main ways of integration.
1) forward integration and the other being 2) backward integration. Both involve purchasing or taking over another company in the same line of business, forward buying would be an example of buying a company bigger than themselves and backward would be an example of buying a smaller company. Either way the original company expands his own business.
Les M on February 5th, 2010

I hope this helps…..

Forward integration is when I do something myself, especially when it is incredibly simple.

Backward integration is when I will never make any dough because I am a lazy-ass.

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