Horizontal&Vertical Integration and Co-operative
Explain: What horizontal integration is? Horizontal Integration is where an organisation develops by buying up competitors in the same section of the market e.g. one music publisher buys out other smaller music publishers. BBC. | Dragons' Den Definition: A situation when two firms in the same industry and at the same stage of production come together. Benefits / PROS A company that seeks to expand through a horizontal integration can achieve economies of scale, economies of scope, increased market power or market share, reduction of production costs, reduction of competition and increases in other synergies. Drawbacks / CONS A company that seeks to expand through a horizontal integration can achieve economies of scale, economies of scope, increased market power or market share, reduction of production costs, reduction of competition and increases in other synergies. Explain: What vertical integrati...