Advantages of Forward integration:

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(I) The firm can exercise greater control over sales and prices of its products. This is very useful in an oligopolistic market.

(ii) The firm’s own retail stores serve as better source of customer feedback. Thus the firm gets better control over quality

(iii) The firm can improve its profits by reducing the costs of distribution and the costs of middlemen.

(iv) The firm can secure the economies of integration. Handling and transportation costs can be reduced.

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