25 Analyse disadvantage of horizontal integration.

[Naveen fatima]

[KN] It can reduce the competition in the market.
[APP] For example if two large smartphone brands merge, there will be fewer choices left to custom.
[AN] This can lead to higher prices as the merged business faces less pressure to keep low prices, reduce innovation and may attract government regulation as authorities tries to stop one firm from becoming dominant.

[Abdur Rehman khan]

[KN] A disadvantage of horizontal integration is that the business may become too large after merging with a competitor, leading to diseconomies of scale.
[APP] For example, if two large retail chains merge, managing many stores and employees across regions could become complicated.
[AN] This can cause communication problems and slower decision-making reduce efficiency, increase costs and wastage which lowers overall profitability.

[sarah_naeem]

[KN]: A disadvantage of horizontal integration is that it can lead to diseconomies of scale.
[APP]: For example, if clothing brands like H&M and Zara merge together the combined business may become too large and difficult to manage.
[AN]: Thus, this can lead to poor communications and misunderstandings as employees would not have clear directions which reduces the efficiency of the business and further leads to lesser sales and failure of business.

[hassanalizafar]

[KN]A disadvantage of horizontal integration is the risk of diseconomies of scale.
[APP] For instance, if two smartphone companies merge managing the larger workforce and operations could become complicated.
[AN] This can lead to poor communication between teams which slower down decision making and lower efficiency which increases costs and reduces overall profitability.