Horizontal integration is a business strategy where a company acquires, merges with or takes over another company in the same industry value chain.
Think of horizontal integration like eating all the slices of a pizza. Each slice represents a different company in the same industry. By eating all the slices, you're essentially taking control of every piece (or company) within that industry.
Vertical Integration: A strategy where a company controls more than one stage of its supply chain. For example, an automobile company owning a tire company.
Merger: The combination of two companies into one larger company.
Acquisition: The process by which one company purchases most or all of another company's shares to gain control of that company.
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.