Examples and Case Studies of Horizontal Integration

Horizontal Integration
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ahmed zerrouki, teacher, Algeria
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  Natalie van Nunen, Student (Other), Netherlands
 

Case Study of Horizontal Itnegration

An example of horizontal integration would be the merger between BHP and Billiton (both mining companies). They merged, forming a large corporation operating in various countries. They previously both mined for various minerals, and because they were both practicing the same techniques and were practically competitors, their merger can be seen as horizontal integration.

  Kyung-Min Park, Manager, Korea (South)
 

Acquisition of GMarket by Ebay - Horizantal Integration

There are numerous examples in the market. Ebay purchased the leading dot com company "Auction". In a few years it decided to purchase GMarket which was the largest online shopping mall in Korea. The deal was carefully reviewed by regulators with serious concerns about potential monopoly or oligopoly. Anyway, Ebay was able to expand its business and consequently dominate the local market in terms of economies of scale and scope.

 
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Disadvantages of Horizontal Integration
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