BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Concentration
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Backward Integration
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Unrelated Diversification
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Horizontal Integration
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Detailed explanation-1: -If a company acquires or merges with another company and both firms are in a very similar industry, it is most likely an example of horizontal integration. Specific examples include: JetBlue’s 2022 merger with Spirit Airlines5.
Detailed explanation-2: -Horizontal Integration Examples Do you love Mac and Cheese? As a company grows and expands, they seek ways that they can scale themselves. Remember, that means to expand in different areas. That’s why you have a company like Kraft Foods that sells macaroni.
Detailed explanation-3: -During a horizontal acquisition, the two companies often produce similar products and have similar production schedules. An example of a horizontal acquisition would be a candy company that purchasing another candy company with different products but a similar production schedule.
Detailed explanation-4: -Horizontal integration helps acquire control over the market, but vertical integration helps gain control over the whole industry. Example: The Heinz and Kraft Foods merger is an example of horizontal integration.