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Horizontal integration is the process of a company increasing production of goods or services at the same level of the value chain, in the same industry. A company may do this via internal expansion, acquisition or merger.[1][2][3]
The process can lead to monopoly if a company captures the vast majority of the market for that product or service.[3]Other benefits include, increasing economies of scale, expanding an existing market or improving product differentiation.
Horizontal integration contrasts with vertical integration, where companies integrate multiple stages of production of a small number of production units.