Western Governors University (WGU) MGMT6020 C215 Operations Management Practice Exam

Forward integration is primarily concerned with channel control. This strategy involves a company taking ownership or control of its distribution channels by moving closer to the end customer. By integrating forward, a business can manage how its products are sold and delivered, leading to greater influence over pricing, merchandising, and overall customer experience.

This approach may enable companies to reduce reliance on third-party distributors, improve market access, and enhance customer relationships. In this way, companies can ensure that their brand is represented consistently and effectively, ultimately aiming to capture more value from their products.

While the other options mention important aspects of business operations, they do not specifically link to forward integration. Quality enhancement, cost reduction, and product development are crucial for any organization's growth and competitiveness, but they do not directly capture the strategic aim of controlling distribution channels that characterizes forward integration.