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Horizontal integration is related to horizontal alliance (also known as horizontal cooperation). However, in the case of a horizontal alliance, the partnering companies set up a contract, but remain independent. For example, Raue & Wieland (2015) describe the example of legally independent logistics service providers who cooperate. [4]
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.
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
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)
Economies of scale is also a justification for economic integration, since some economies of scale may require a larger market than is possible within a particular country — for example, it would not be efficient for Liechtenstein to have its own car maker, if they would only sell to their local market. A lone car maker may be profitable ...
Vertical concentration and horizontal integration allow cross pollination to promote products across multiple mediums. For instance, AOL Time Warner owns magazines, book publishing houses, film studios, television networks, cable channels, retail stores, libraries, sports teams etc., and can thus promote one through the utilization of another.
For example, the German magazine Die Woche in 1902 printed an article about a countess in her castle where she, in one of the photographs, holds a copy of the magazine in her hands. [ 12 ] Product placement was a common feature of many of the earliest actualities and cinematic attractions from the first ten years of cinema history.
Whereas the European Commission is unlikely to contest any horizontal integration, which post merger HHI is under 2000 (except in special circumstances). [14] Modern examples of market concentration being utilised to protect consumer welfare include: