IGCSE, A Level Business Student Forum

Posted: **Mon Nov 06, 2023 11:04 pm**

[Kn]Bigger Base of Customers
[An]Because the two companies may be operating in the same industry, they may not necessarily have the same consumer base. By merging the two companies into one, the new organization now has access to a larger base of customers.

[Kn]Improved efficiencies
[An]Horizontal integration may empower companies to reduce overall costs by sharing technology, marketing. They may also be able to produce a greater number of products or services more cost-effectively than the two individual companies were able to achieve on their own
[An+]Enhancing there profitability

Posted: **Wed Nov 08, 2023 4:58 pm**

Humzah Zafar wrote: ↑Sun Oct 29, 2023 2:08 pm [KN]Less competition in the market
[AN]horizontal integration leads to elimination of competition in the market
[AN+]This may lead to business charging higher prices for their product and increasing their market share

[KN]Economies of scale achieved
[AN]due to horizontal integration, economies of scale are achieved which means there is lest cost of production per unit
[AN+]This may lead to higher profit which may e used to fund expansion

2nd analysis point isnt really giving much of a direction

Posted: **Wed Nov 08, 2023 5:02 pm**

Abbas17 wrote: ↑Mon Nov 06, 2023 9:30 pm (KN) Market Share Expansion
(AN) Horizontal integration allows a business to increase its market share by consolidating its presence in the same industry.
(AN+) This can result in a larger customer base and greater control over pricing and distribution.

(KN) Reduction of Competition
(AN) Horizontal integration can lead to the elimination of a competitor from the market. By acquiring a rival company, a business can reduce competitive pressures and potentially gain a dominant position in the industry.
(AN+) This would give them an edge over their competitors and help them dominate the market

answer is masterfully copied from another man

IGCSE, A Level Business Student Forum

22 Analyse the benefits of horizontal integration as growth strategies to a business. [6]

Re: 22 Analyse the benefits of horizontal integration as growth strategies to a business. [6]

Re: 22 Analyse the benefits of horizontal integration as growth strategies to a business. [6]

Re: 22 Analyse the benefits of horizontal integration as growth strategies to a business. [6]