horizontal integration
| Merger with, or takeover of, one company by another company operating at a similar stage in the production chain. The production and supply chain run from the sourcing of the raw material through to the sale to the consumer. The benefits of this type of integration come from power in the marketplace and an economy of scale. However, if the resulting company exerts too much control over the market it operates in, it may fall foul of legislation designed to prevent companies from obtaining a monopoly advantage. |
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