Can Horizontal integration allow companies to quickly expand their reach and expertise while reducing costs. Comment...

Can Horizontal integration allow companies to quickly expand their reach and expertise while reducing costs. Comment IN DETAIL NO SHORT ANSWER PLEASE

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Horizontal Integration is the process where two companies at same level of expertise, merge with each other to cut their cost and expand their busniess. This type of integration can be between companies who are in same business or in other type of business. Some of the notable examples of Horizontal Integration are Facebook and Instagram, Disney and Pixar, Exxon Mobil, etc. These companies merged with each other to expand their business and cut their cost. This also increased the market share of these companies while eliminating the competition. Companies also learn from each others workings and learn from their shortfalls. The companies can also enter new market segment and pitch new customers.

The disadvantage of this method can be that the powerful company can wipe away the work of the weaker one and can create its monopoly.

jeff jeffy answered 2 years ago

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