USA HISTORY

Detailed explanation-1: -Horizontal integration involves buying competitor companies within the same industry that are similar in size. Buying out the competition not only creates a larger company or conglomerate, but creates economies of scale, increases market power among suppliers and distributors, and opens up new markets for the company.

Detailed explanation-2: -Horizontal integration is a business strategy in which one company grows its operations at the same level in an industry. Horizontal integrations help companies grow in size and revenue, expand into new markets, diversify product offerings, and reduce competition.

Detailed explanation-3: -Reduces competition by removing key rivals – this increases market share and lifts a firm’s pricing power. Buying an existing and well-known brand can be cheaper in the long-run than organically growing a brand – this can then make entry barriers higher for potential rivals and lead to higher long-run monopoly profits.

Detailed explanation-4: -Horizontal integration is a growth strategy that many companies use to boost their position within their industries and to get an edge on their competition. They do this by taking over another company that operates at the same level of the value chain.

Detailed explanation-5: -Rather than rely on their own efforts, some firms try to expand their presence in an industry by acquiring or merging with one of their rivals. This strategic move is known as horizontal integration. An acquisition takes place when one company purchases another company.