Strategy
Horizontal integration
Combining with firms at the same stage, often competitors.
Last reviewedWhat does Horizontal integration mean?
Horizontal integration means merging with or buying companies at the same stage of the value chain, often competitors, to gain scale, market share or reach. Competition authorities review large deals of this kind.
Where does it come up in case interview prep?
Related terms
- Vertical integrationOwning more stages of your own supply chain.
- SynergyExtra value created when two businesses combine.
- Economies of scaleCost per unit falls as volume rises.
- Economies of scopeCost falls when related products share resources.
- Barriers to entryWhat makes it hard for new competitors to enter a market.
- Switching costsThe cost or effort for a customer to change supplier.
- Network effectsA product becomes more valuable as more people use it.
- Competitive advantageWhat lets a firm earn more than its rivals over time.