horizontal integration



The merger of companies at the same stage of production in the same or different industries. When the products of both companies are similar, it is a merger of competitors. When all producers of a good or service in a market merge, it is the creation of a monopoly. If only a few competitors remain, it is termed an oligopoly. Also called lateral integration. See also vertical integration.

Use this term in a sentence

  • Sometimes two companies will have horizontal integration and join together with the hopes of making better profits as a pair.

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  • Utilizing different organization and structural approaches to coordinate an organization's operations often uses horizontal integration, which involves cooperation with entities that function on a similar level.

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  • We are initiating a horizontal integration between the Microsoft and Apple companies to create the megacorporation that will be AppSoft.

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