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horizontal integration
This term is primarily used in business strategy and economics to describe a specific type of expansion. It carries a connotation of consolidation and market dominance, often triggering antitrust scrutiny from regulatory bodies because it directly reduces the number of competitors in a specific niche.
It is distinct from vertical integration, which involves expanding into different stages of production (such as a manufacturer buying its raw material supplier). Horizontal integration focuses on breadth across the same level of the supply chain, emphasizing scale and synergy over supply chain control.
Ý nghĩa
The strategic process of a company acquiring or merging with other companies that operate at the same level of the value chain within the same industry to increase market share or reduce competition.
The electronics giant pursued horizontal integration by purchasing its primary competitor to increase its market share.