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.

[Hajra]

K: Horizontal integration means when two businesses in the same industry and stage of production join together.
App: For example, if one clothing brand merges with another clothing brand.
An: This helps the business increase its market share and reduce competition.

[Abdullah Altaf]

[KN] Horizontal integration is a business strategy where a company expands by acquiring or merging with other companies that operate at the same level of the value chain and offer similar products or services.
[APP] For instance, if a mobile phone manufacturer like Samsung were to acquire its competitor, Apple, it would be an instance of horizontal integration. Both companies are in the same industry, producing and selling smartphones.
[AN]This strategy allows the business to increase its market share, potentially reduce competition, and achieve economies of scale by combining resources and operations. It can also lead to greater innovation and a stronger market position.

[Abdullah Mohsin]

[KN] Is a way to expand by taking over a competitor in the same market
[APP] For example, if a car manufacturer like Toyota takes over Honda, it would be horizontal intergration as both companies are in the same industry, producing and selling vehicles.
[AN] This leads to a fall in competition, leading to an increase in market share and allows the company to achive a greater bulk discount on raw materials than before (purchasing economies of scale), decreasing the COP of the business and increasing profit margins.

[abdurrehman waseem]

KN: Horizontal integration occurs when two firms at the same stage of production merge or take over each other.
App: For example, if PepsiCo merged with Coca-Cola, it would be horizontal integration as both operate in the soft drinks market.
An: This helps increase market share, reduce competition, and benefit from economies of scale, strengthening the firm’s position in the industry.

[Abdullah Baig]

Kn
Horizontal integration is when a business merges with or takes over another company operating at the same stage of production in the same industry
App
For example, one supermarket chain might buy another supermarket allowing it to combine operations and eliminate a competitor which increases its market share and customer base helping it achieve economies of scale and stronger brand presence
An
Therefore, horizontal integration helps businesses grow by expanding their market power and reducing competition within the same industry level

[Mamoona Hussain]

KN: Horizontal integration is when a business takes over or merges with another business in the same industry at the same stage of production.
APP: For instance, toy factory A takes over or merges with or takes over toy factory B in order to expand externally.
AN: Due to this, toy factory A will be able to sell more toys, which will increase the revenue and profits generated by them, which can later be used to introduce new models of toys or to improve their quality, which will attract more customers and improve their brand image. So horizontal integration can help the business to grow and to survive long-term in the market.

[Abdur Rehman khan]

[KN] Horizontal integration happens when two firms at the same stage of production and in the same industry join together to form a merger.
[APP] For example, two restaurant chains merging to increase their reach and attract a larger customer base in the same market.
[AN] This allows the combined business to benefit from the expertise of both sides helps the business reduce competition and benefit from economies of scale such as bulk buying and shared marketing costs, increasing overall profitability

[M huzaifa jillani]

(KN)
Internal growth happens when a business expands by increasing its own sales while external growth involves merging with or taking over another business.
(APP)
For example a local restaurant might open another branch on its own instead of merging with another food company.
(AN)
This allows the business to keep full control over decisions and operations rather than sharing ownership or management with another firm. As a result the business can grow at its own pace maintain its culture and quality standards and avoid problems like disagreement or integration issues that often occur after merges.