Horizontal integration is a business strategy in which one company expands its activities at the same level in the industry.
Horizontal integration helps companies grow in size and revenue, expand into new markets, diversify product offerings, and reduce competition.
Disadvantages of horizontal integration include regulatory oversight, reduced consumer choice, less internal flexibility, and the potential to destroy value rather than create it.
A company can integrate horizontally by merging with another company, acquiring another company, or expanding its operations internally.
The opposite approach to horizontal integration is vertical integration, in which a company acquires a firm operating in the same industry but at a different stage in the production process.