Horizontal integration

A diagram illustrating horizontal integration and contrasting it with vertical integration

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 or through mergers and acquisitions.[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] Benefits of horizontal integration include: increasing economies of scale, expanding an existing market, and improving product differentiation.

Horizontal integration contrasts with vertical integration, where companies integrate multiple stages of production of a small number of production units.

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