Horizontal Integration
Horizontal integration is a business strategy where a company acquires or merges with another company in the same industry and at the same stage of production. The goal is to increase market share, reduce competition, and achieve economies of scale. For example, if a car manufacturer buys another car company, they can combine resources, streamline operations, and offer a broader range of vehicles. This strategy can lead to increased profits and stronger competitive positioning by consolidating strengths and reducing costs.
Additional Insights
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Horizontal integration is a business strategy where a company acquires or merges with others at the same level of the supply chain, often in the same industry. This allows a company to expand its market share, reduce competition, and increase efficiency by joining forces with similar businesses. For example, if a car manufacturer buys another car manufacturer, they can combine resources, share technology, and reach more customers. It's a way to grow and strengthen a company’s position without diversifying into different markets.