In
business,
horizontal integration is a strategy where a
company creates or acquires
production units for outputs which are alike – either complementary or competitive. One example would be when a company acquires competitors in the same industry doing the same stage of production for the creation of a
monopoly. Another example is the management of a group of products which are alike, yet at different price points, complexities, and qualities. This strategy may reduce
competition and increase
market share by using
economies of scale. For example, a car manufacturer acquiring its competitor who does exactly the same thing.