horizontal integration
- noun
- /ˌhɔːrɪˈzɒntəl ˌɪn.tɪˈɡreɪ.ʃən/
- Specialized
- Many companies utilize horizontal integration to increase their production capabilities and efficiency.
Examples
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Horizontal integration allows companies to expand their market share by acquiring competitors.
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Horizontal integration refers to the combining of similar organizations, in this case hospitals, into a larger unit with the primary objective of enhancing market power (Kaluzny & Hernandez, 1988, p. 401).
Academic text (1990) -
This is a future of horizontal integration, not vertical integration.
Blog text (20) -
You might have a paywall like Piano has, and that can be vertical or horizontal integration.
Blog text (27) -
Its vertical and horizontal integration provides a social location that can bring insights into many of the issues that globalization has raised today.
Academic text (2008) -
It may instead be that the lack of these capabilities is Facebook's greatest strength, as it will force them into a strategy of horizontal integration.
Blog text (20) -
Horizontal integration refers to the joining of programs/services within risk levels, whereas vertical integration involves the coordination of services across risk levels.
Academic text (2011) -
Horizontal integration through mergers and joint ventures has become more common as utilities search for ways to minimize production and transmission costs in the face of increasing competition (O'Connor et al. 1988).
Academic text (1992) -
By pursuing horizontal integration, the firm successfully merged with several similar businesses to enhance its market presence.
Synonyms
Two companies in the same business that compete join to become one company
Joining companies that do the same work to reduce competition or save money
How Integrated
- Specialized
- Formal
Surface Forms
Morphology
The components 'horizontal' (across the same level) and 'integration' (combining) give a clear hint that something is being combined at the same level, so a learner can partially infer the idea. However, the specific business sense—merging or acquiring similar companies at the same supply‑chain level—is domain‑specific and not fully predictable from everyday meanings alone. Because the spatial metaphor helps but specialized knowledge is needed for the full interpretation, this is only partially transparent.
Etymology
Horizontal integration comes from a simple image: companies on the same level joining together. Horizontal means 'on the same level' and integration means 'bringing together', so when companies at the same stage merge or buy rivals they join forces and reduce competition.