Horizontal integration

In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. To get this market coverage, several small subsidiary companies are created. Each markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the horizontal integration of marketing. The horizontal integration of production is where a firm has plants in several locations producing similar products. Horizontal integration in marketing is much more common than horizontal integration in production. It is contrasted with vertical integration.

Related Topics:
Microeconomics - Strategic management - Business - Corporation - Product - Market - Market segment - Vertical integration

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A monopoly created through horizontal integration is called a horizontal monopoly.

Related Topics:
Monopoly - Horizontal monopoly

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