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Horizontal Integration for Dummies

noun


What does Horizontal Integration really mean?

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Hey there! So, let's talk about this term "horizontal integration." Don't worry about the complex wording -- I'm here to explain it to you in a way that makes total sense. So, imagine you have a pizza shop. You might know that a pizza shop usually makes and sells pizzas, right? Well, let's say you own a pizza shop, but you also want to sell drinks and desserts to go along with those pizzas. That's where horizontal integration comes in!

Horizontal integration is when a company expands its business by adding new products or services that are related to what they already do. It's like when our pizza shop starts offering drinks and desserts, which are related to the main product (pizzas) that they already sell. Instead of just focusing on pizzas, they "integrate" these additional offerings "horizontally" into their business.

Now, let's imagine another example to make it even clearer. Think about a smartphone company that initially only made cell phones. What if they decided to start making phone cases, earphones, and other accessories? It's again an example of horizontal integration because they are expanding their business by adding related products to their existing line of cell phones.

So, to sum it up, horizontal integration means when a company expands its business by adding new products or services that are related to what they already do. It's like growing sideways within their existing industry, instead of going in a completely different direction.

I hope this explanation makes it easier for you to understand the term "horizontal integration." Feel free to ask if you have any more questions!

Revised and Fact checked by Elizabeth Martin on 2023-10-29 09:45:13

Horizontal Integration In a sentece

Learn how to use Horizontal Integration inside a sentece

  • When a company that makes shoes decides to also start making socks, it is an example of horizontal integration.
  • If a fast food restaurant chain acquires another fast food restaurant chain to have more locations, it is an example of horizontal integration.
  • When a smartphone manufacturer decides to produce their own accessories like headphones and chargers, it is an example of horizontal integration.
  • If a bookstore starts publishing books written by its own authors instead of just selling books from other publishers, it is an example of horizontal integration.
  • When a company that produces cars also starts manufacturing car parts like engines and tires, it is an example of horizontal integration.

Horizontal Integration Synonyms

Words that can be interchanged for the original word in the same context.

Horizontal Integration Hypernyms

Words that are more generic than the original word.