horizontal integration

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Vishnu Agarwal

Vishnu Agarwal (Querist)
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29 August 2008

What is the meaning of horizaontal integration?

Vishnu Agarwal

Vishnu Agarwal (Querist)
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29 August 2008

also meaning of vertical integration.

Vishnu Agarwal

Vishnu Agarwal (Querist)
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29 August 2008
reply as early as possible

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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27 October 2008 In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. Horizontal integration in marketing is much more common than vertical integration in production. It is contrasted with vertical integration. Horizontal integration occurs when a firm in the same industry and in the same stage of production is being taken-over or merged with another firm which is in the same industry and in the same stage of production as of with the merged firm. Eg: A car manufacturer merging with another car manufacturer. In this case both the companies are in the same stage of production and also in the same industry.

A monopoly created through horizontal integration is called a horizontal monopoly.[citation needed].

A term that is closely related with horizontal integration is horizontal expansion. This is the expansion of a firm within an industry which it is already active, the purpose is to increase its share of the market for a particular product or service.

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