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Key Takeaways. Horizontal integration is a business strategy where one company takes over another that operates at the same level in an industry. Vertical integration involves the...
When considering horizontal and vertical integration, it’s essential to understand how these strategies differ and how they apply to different business contexts. Below, we break down key differences across several dimensions.
Horizontal integration is the process where a company expands by acquiring another company within its industry. A company can achieve this type of integration by merging with another company of equal or better strength to gain more influence, grow revenue and expand its customer base.
Horizontal integration brings synergy but not self-sufficiency to work independently in the value chain, while vertical integration helps the company gain independence.
Horizontal integration is the acquisition of a business operating at the same level of the value chain in the same industry—that is, they make or offer similar goods or services. This...
Horizontal integration can be a viable business strategy for companies looking to increase revenue and market share in a competitive industry. Learn about the three types of horizontal integration with real-life examples from companies like Disney and Starbucks.
Horizontal integration and vertical integration are two methods for expanding businesses, with each strategy presenting distinct benefits and drawbacks. The most obvious distinction between horizontal integration and vertical integration is the direction in which the integration moves.