Horizontal integration differs from vertical integration in that it _____

General
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horizontal integration differs from vertical integration in that it _____.

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LectureNotes said horizontal integration differs from vertical integration in that it focuses on acquiring or merging with other companies at the same stage of production or in the same industry, rather than expanding along the supply chain.

Horizontal Integration vs. Vertical Integration

1. Horizontal Integration:

  • Goal: Increase market share by acquiring or merging with competitors.
  • Example: If a car manufacturer buys another car company, it is expanding its market presence at the same production level.

2. Vertical Integration:

  • Goal: Control more of the supply chain by acquiring companies at different stages: suppliers, distributors, etc.
  • Example: A car manufacturer purchasing a tire company to control tire production.

Summary: Horizontal integration is about expanding within the same market level, while vertical integration involves growth across different levels of the supply chain.