horizontal integration

Definition

Consolidation, through mergers, acquisitions, or takeovers, of multiple companies involved in the same level of a production process. A merger between several retail brokerages would be an example of horizontal integration, while a merger between a retail brokerage and a mutual fund management company would not.

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Larger tech firms seem to be purchasing smaller companies on an almost daily basis in an attempt to grow through horizontal integration.

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When my grocery store started buying up all the other grocery stores in the area, I knew their managers were trying a strategy of horizontal integration.

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When the two smaller department stores realized they couldn't compete with the larger chain store on their own, they decided horizontal integration would be their best bet, because they could pool their resources together to fight against the bigger store.

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