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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)
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.
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
Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production (e.g., growing raw materials, manufacturing, transporting, marketing, and/or retailing). Vertical integration is the degree to which ...
In economics the word integration was first employed in industrial organisation to refer to combinations of business firms through economic agreements, cartels, concerns, trusts, and mergers—horizontal integration referring to combinations of competitors, vertical integration to combinations of suppliers
The two types of keiretsu, horizontal and vertical, can be further categorized as: Kigyō shūdan ( 企業集団 , "horizontally diversified business groups" ) Seisan keiretsu ( 生産系列 , "vertical manufacturing networks" )
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