Horizontal integration

Under horizontal integration is understood in the economy the grouping of companies on the same production level under a single management.

These establishments use agglomeration advantages such as joint procurement of raw materials, market policy and the like.

A disadvantage of the competition between farms is mentioned.

Within a business enterprise is meant by horizontal integration of the optimized material and information flow from various departments on a hierarchy level.

See also: vertical integration, lateral integration

• Competition Theory