Horizontal integration is defined as ...

Horizontal integration is defined as ...

• A. Outsourcing
• B. The process increasing production of goods or services at the same part of the supply chain
• C. Mergers to diversify
• D. Process increasing production at any stage

Answer: (B)

Horizontal integration means expanding capacity at the same stage of the value chain by merging with or acquiring other firms that operate at the same level, typically to increase market share and achieve economies of scale. This focus on increasing production at the same part of the supply chain distinguishes it from outsourcing, which brings production to external suppliers, and from diversification, which moves into different products or industries. It also differs from vertical integration, which involves moving up or down the chain (toward suppliers or distributors) rather than staying at the same level. So the description that aligns with horizontal integration is increasing production at the same part of the supply chain.

Horizontal integration means expanding capacity at the same stage of the value chain by merging with or acquiring other firms that operate at the same level, typically to increase market share and achieve economies of scale. This focus on increasing production at the same part of the supply chain distinguishes it from outsourcing, which brings production to external suppliers, and from diversification, which moves into different products or industries. It also differs from vertical integration, which involves moving up or down the chain (toward suppliers or distributors) rather than staying at the same level. So the description that aligns with horizontal integration is increasing production at the same part of the supply chain.