Horizontal Integration

Knowledge Center


Acquiring business activities at the same level of the value chain. Explanation of Horizontal Integration.

Contributed by: Ed Walters

Horizontal Integration

What is Horizontal Integration? Description

Like its counterpart, Vertical Integration, Horizontal Integration is a potential strategic move which a firm may consider. Horizontal Integration means to acquire business activities at the same level of the value chain. This can mean:

  • Acquiring activities dealing with similar products, so that synergies accrue and there is a degree of ‘sensible’ diversification. For example complementary confectionary products supported by the same basic marketing messages.
  • Acquiring activities that are substitutes for one’s products. Hence a firm can cover the threat from substitutes implicated as one of Porter’s 5 Forces. For example Canon moving into digital camera's.
  • Acquiring competitors. In this way reducing the threat from competition.
  • Completing the product range which is ‘expected’ by the customer. For example, Microsoft has pursued this strategy with its Microsoft Office Software.

Usage of Horizontal Integration. Applications

Strategic Planning.

Steps in Horizontal Integration. Process

See: Acquisition Integration Approaches

Strengths of Horizontal Integration. Benefits

  • Economies of scale.
  • Synergy. Economies of scope.
  • Defense against substitutes.
  • Reduction in competition.
  • Fulfilling customer expectations.
  • Increased negotiation power. Get more leverage over powerful suppliers or customers.

Limitations of Horizontal Integration. Disadvantages

  • Synergies may be more imaginary than real. A famous example was SAAB with its cars and aircraft.
  • Substitutes market is often very different. To turn an acquisition into a success is a big and lengthy management challenge.
  • Reduction in competition, or even a monopoly, may lead to anti-trust issues.

Special Interest Group - Horizontal Integration

Special Interest Group (21 members)

Forum - Horizontal Integration  

In the forum section you will find recent discussions within this knowledge area.

  Examples and Case Studies of Horizontal Integration (2 reactions)
Who can share and explain an example of horizontal integrati...
  Advantages of Horizontal Integration (2 reactions)
Are there besides the benefits mentioned above still more ad...
  Disadvantages of Horizontal Integration (1 reactions)
Are there besides the limitations mentioned above still more...

Best Practices - Horizontal Integration

In the best practices section you will find the best forum discussions within this knowledge area.

Expert Tips - Horizontal Integration

In the expert tips section you will find advices from experts within this knowledge area.


Two More Forms of Strategic Integration

Strategy, Corporate Integration...

Resources - Horizontal Integration

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.

Mergers, Acquisitions & Corporate Control

Corporate Control, Mergers and Acquisitions, Anti-takeover Measures, Synergies...

Vertical Integration and Horizontal Integration

Difference Between Vertical Integration and Horizontal Integration...

Antitrust Enforcement

Horizontal Mergers...

Horizontal Mergers

Competition policy, prices...

Open Source Projects

Horizontal Innovation Networks...

News about Horizontal Integration


News about Fusion Merger


Videos about Horizontal Integration


Videos about Fusion Merger


Presentations about Horizontal Integration


Presentations about Fusion Merger


Books about Horizontal Integration


Books about Fusion Merger


More about Horizontal Integration


More about Fusion Merger


Compare with Horizontal Integration: Vertical Integration  |  Value Chain  |  Porter Five Forces  |  Leveraged Buy-out  |  Acquisition Integration Approaches  |  Parenting Styles  |  Core Competence  |  Insourcing  |  Co-opetition

Return to Management Hub: Finance & Investing  |  Strategy  |  Supply Chain & Quality

More Management Methods, Models and Theory

Special Interest Group Leader

You here? Sign up for free


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.0 - Last updated: 19-6-2019. All names ™ of their owners.