21 Explain what is meant by 'horizontal integration', using an example.

[Sir Afzal Shad]

21 Explain what is meant by 'horizontal integration', using an example. [3]
Hint: Joining with a competitor > At the same stage of production > E.g., one supermarket buying another supermarket.

[Aarib Saad]

(KN)It is a merger or a take over between two businesses in the same level of the production chain.
(APP)For instance, if two agricultural businesses/farms merge (both in primary sector) or if two grocery stores merge (both sell the products to people).
(AN)This in turn would mean better decision making as both businesses will be aware of how to operate in the market, so the business will be able to react to market changes and market opportunities more quickly, boosting market share.

[Naveen fatima]

[KN] Some businesses grow by merging with another business that is in the same market.
[APP] For example, If one clothing retailer merges with another clothing retailer, That’s horizontal integration.
[AN] This helps the business increase its market share, reduces the competition and benefits from the economies of scales by sharing the costs and resources.

[shamaim shakeel]

KN] Horizontal integration happens when one business joins or buys another business that operates at the same stage of production in the same industry.
[APP] For example, Coca-Cola could merge with another soft drink company like Pepsi to expand its market share and customer base.
[AN] This helps the business grow by reducing competition, increasing sales, and gaining economies of scale, which can lead to higher profits.

[EmmanWaseem]

It is when a business is joining another business of the same industry
For example one supermarket buys another supermarket
Increase in product line and variety leading to customers satisfaction

[Fatima ibtehaj]

[KN]Horizontal integration means when a business merges with or takes over another business that operates at the same stage of production in the same industry.
[APP]Coca-Cola were to merge with Pepsi, that would be horizontal integration because both companies produce and sell soft drinks at the same stage of production.
[AN]The business gains a larger share of the market by combining with a competitor, giving it more power to set prices and influence customers and it can reduce average costs

[Aayan Zaidi]

KN: Horizontal integration is when a business joins or merges with another at the same stage of production in the same industry.
APP: E.g if two car companies like Toyota and Honda merged, that would be horizontal integration.
AN: It helps the business grow, reduce competition, and increase market share.