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Horizontal integration is the process of a company increasing production of goods or services at the same level of the value chain, in the same industry. A company may do this via internal expansion or through mergers and acquisitions .
These integration mechanisms are defined as meta-integration, vertical integration, and horizontal integration. Meta-integration is based on the management and business philosophy which defines the company's consideration of and relation to its stakeholders’ values.
Horizontal integration and vertical integration, in microeconomics and strategic management, styles of ownership and control; Regional integration, in which states cooperate through regional institutions and rules; Integration clause, a declaration that a contract is the final and complete understanding of the parties
Horizontal integration, when a company increases production of goods or services at the same level of the value chain and in the same industry (e.g via internal expansion, acquisition or merger) Vertical integration, when the supply chain of a company is integrated and owned by that company (i.e. integration of multiple stages of production)
Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations. For example, Avon's move to market jewellery through its door-to-door sales force involved marketing new products through existing channels of distribution.
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In other languages, the shape of the integral symbol differs slightly from the shape commonly seen in English-language textbooks. While the English integral symbol leans to the right, the German symbol (used throughout Central Europe) is upright, and the Russian variant leans slightly to the left to occupy less horizontal space. [7]
Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production (e.g., growing raw materials, manufacturing, transporting, marketing, and/or retailing). Vertical integration is the degree to which ...