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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 or through mergers and acquisitions .
Horizontal integration, when a company increases production of goods or services at the same level of the value chain and in the same industry (e.g via internal expansion, acquisition or merger) Vertical integration, when the supply chain of a company is integrated and owned by that company (i.e. integration of multiple stages of production)
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
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Horizontal integration and vertical integration, in microeconomics and strategic management, styles of ownership and control; Regional integration, in which states cooperate through regional institutions and rules; Integration clause, a declaration that a contract is the final and complete understanding of the parties
These integration mechanisms are defined as meta-integration, vertical integration, and horizontal integration. Meta-integration is based on the management and business philosophy which defines the company's consideration of and relation to its stakeholders’ values.
The medicine industry is an example of a vertical market. A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs.
The word horizontal is derived from the Latin horizon, which derives from the Greek ὁρῐ́ζων, meaning 'separating' or 'marking a boundary'. [2] The word vertical is derived from the late Latin verticalis, which is from the same root as vertex, meaning 'highest point' or more literally the 'turning point' such as in a whirlpool. [3]