Horizontal integration

A diagram illustrating horizontal integration and contrasting it with vertical integration

Horizontal integration is the process of a company increasing production of goods or services at the same level of the value chain, in the same industry. A company may do this via internal expansion, acquisition or merger.[1][2][3]

The process can lead to monopoly if a company captures the vast majority of the market for that product or service.[3]Other benefits include, increasing economies of scale, expanding an existing market or improving product differentiation.

Horizontal integration contrasts with vertical integration, where companies integrate multiple stages of production of a small number of production units.

  1. ^ Cite error: The named reference b1 was invoked but never defined (see the help page).
  2. ^ Cite error: The named reference b2 was invoked but never defined (see the help page).
  3. ^ a b Cite error: The named reference b3 was invoked but never defined (see the help page).

From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Nelliwinne