Horizontal integration

HORIZONTAL INTEGRATION

  • It is the association, amalgamation or merging of the companies and units engaged in the same type of production, like merging together of two or more hatcheries, commercial farms, processing plants etc., resulting in increase in the volume of operation and expansion in production.
  • The integrator can go for diversified fast foods and advertisement in mass media for sales promotion. Sometimes it may also lead to either unhealthy competition among integrators or even monopoly. Both are not good for the industry.
Last modified: Monday, 7 May 2012, 4:32 AM