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Horizontal integration

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Microeconomics/Management Edit

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. A monopoly created through horizontal integration is called a horizontal monopoly.

Horizontal integration refers to

integration of the elements mentioned across management functions, such as the integration of human capital management and financial management activities in areas related to payroll.[1]

References Edit

  1. Department of Homeland Security: Progress Made in Implementation and Transformation of Management Functions, but More Work Remains, at 15 n.33.

See also Edit


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