horizontal integration
This query is : Resolved
Vishnu Agarwal
(Querist)
29 August 2008
What is the meaning of horizaontal integration?
What is the meaning of horizaontal integration?
Vishnu Agarwal
(Querist)
29 August 2008
also meaning of vertical integration.
also meaning of vertical integration.
Vishnu Agarwal
(Querist)
29 August 2008
reply as early as possible
reply as early as possible
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.
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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