Horizontal integration involoves the acquistion of competitors in the same section of the industry. It might be easy possible for one company to seek to control all the market-a monoply position-but most capitalist countries have laws to prevent this happening.
Vertical integration is joining together of businesses that are involved in different but related activities or processes. Vertical intergation describes a style of management control. Nineteenth century steel tycoon Andrew Carnegie introduced the idea of vertical integration.
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 is in production. Horizontal integration occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. 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.
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