Definition - What does Horizintal Intergration mean?
Divestopedia explains Horizintal Intergration
Horizontal integration is effective when:
- The firm is competing in a growing industry
- The competitors lack some skills, capabilities, competencies or resources that a firm already possesses
- Economies of scale have significant effect
- The firm has sufficient resources to manage mergers and acquisitions
- If it leads to a monopoly, it is permitted by the government