USA HISTORY

Detailed explanation-1: -Horizontal integration occurs when similar companies merge in the same stage of a supply chain merge. As opposed to a vertical integration which helps a company shift to earlier or later in the supply chain, horizontal integration further solidifies a company’s current position along a manufacturing process.

Detailed explanation-2: -Horizontal integration is a competitive strategy where business entities operating at the value chain level and within the same industry merge to increase the production of goods and services. The overall gain from a horizontal integration is an increase in the market power and minimal loss for being non-integrated.

Detailed explanation-3: -A horizontal acquisition, also known as a horizontal merger or horizontal integration, is a strategy that involves one or more organizations taking over or merging with another that operates in the same industry and is in the same stage of production.

Detailed explanation-4: -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. 1 Both companies operated in the same industry (social media) and shared similar production stages in their photo-sharing services.