What is a horizontal intergration?

Answer 1

I believe this refers to economics, correct? Well, when a business merges with another business, there are different types of merging. A horizontal merger (integrator) merges with a business at the same level of production. What this means, is that it merges with a business that manufactures and sells a product of the same type. An example would be AT&T merging with Verizon Wireless, or Shell merging with Exon. The first two are cell phone companies and the other's are oil companies. Suppose you merged with a company that produces sim cards for cell phones, or any other type of hardware in a cell phone. This would be a vertical merge because they are different "levels of production." Think of it like this, a horizontal merger doesn't move up, but rather stays the same and moves forward. While a vertical merger moves up and down. So the company making chips is moving up, while the company moving down is the company that sells the finished product (cell phone). Horizontal mergers only merge with a company on the same level as them.

Answer 2

Horizontal integration is a strategy where a company acquires or merges with its competitors or companies within the same industry. This can lead to increased market share, economies of scale, and elimination of competition. The goal is to strengthen the company's position in the market and potentially reduce costs.