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In History / High School | 2014-10-22

How does horizontal integration differ from vertical integration?

Asked by MelindaBremme

Answer (3)

vertical integration includes a company/business having not only one type of business but also the businesses needed for that business (like McDonalds not only owning restaurants but also buying farms that grow lettuce, tomatoes, wheat, cattle, etc.). horizontal integration includes a company/business buying up all the competitors businesses (McDonalds buying Burger King and Wendy's restaurants).

Answered by Teddy17 | 2024-06-10

Horizontal integration is a business strategy aimed at increasing market share by acquiring or merging with competitors, whereas vertical integration is a strategy aimed at expanding into different steps of the production path to gain control over the supply chain and reduce costs. ;

Answered by qwpen | 2024-06-18

Horizontal integration involves merging with or acquiring companies at the same level in the supply chain to reduce competition and increase market share. In contrast, vertical integration refers to a company's expansion into different stages of the supply chain, either upstream (backward integration) or downstream (forward integration), to gain more control over its production and distribution processes. The primary difference lies in the nature of the expansion: similar businesses for horizontal integration versus different stages of production for vertical integration.
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Answered by Teddy17 | 2024-11-01