ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service.

Detailed explanation-2: -All of Nike’s products use the same resources and distribution channels. Nike uses vertical integration during the supply chain process when handling with producers, retailers, and providers (Soni, Phalguni).

Detailed explanation-3: -Horizontal integration is a type of merger where competitors operating in the same market combine their operations to benefit from economies of scale. If two companies that offer virtually identical or similar goods or services decide to undergo a merger, the transaction is considered to be horizontal integration.

Detailed explanation-4: -Horizontal Merger vs. Horizontal merger: When companies that sell similar products merge together. Vertical merger: Occurs between companies at different stages in the production process (between companies where one buys or sells something from or to the company).

Detailed explanation-5: -One of the most definitive examples of horizontal integration was the acquisition of Instagram by Facebook (now Meta) in 2012 for a reported $1 billion. Another notable example of a horizontal integration was Walt Disney Company’s $7.4 billion acquisition of Pixar Animation Studios in 2006. More items