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horizontal integration
In business, horizontal integration is a strategy where a company creates or acquires production units for outputs which are alike - either complementary or competitive. One example would be when a company acquires competitors in the same industry doing the same stage of production for the creation of a monopoly.〔http://www.businessdictionary.com/definition/horizontal-integration.html〕 Another example is the management of a group of products which are alike, yet at different price points, complexities, and qualities. This strategy may reduce competition and increase market share by using economies of scale. For example, a car manufacturer acquiring its competitor who does exactly the same thing.
Horizontal integration is orthogonal to vertical integration, where companies integrate multiple stages of production of a small number of production units.
Horizontal integration is related to horizontal alliances (= horizontal cooperation). However, in the case of a horizontal alliance, the partnering companies set up a contract, but remain independent. For example, Raue & Wieland (2015) describe the example of legally independent logistics service providers who cooperate.〔Raue, J.S. & Wieland, A. (2015), (The interplay of different types of governance in horizontal cooperations: a view on logistics service providers ). The International Journal of Logistics Management, Vol. 26, No. 2.〕 Such an alliance relates to coopetition.
== Benefits of horizontal integration ==
Benefits of horizontal integration to both the firm and society may include economies of scale and economies of scope. For the firm, horizontal integration may provide a strengthened presence in the reference market. It may also allow the horizontally integrated firm to engage in monopoly pricing, which is disadvantageous to society as a whole and which may cause regulators to ban or constrain horizontal integration.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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