Business · 2
What is the term for the strategy where a company acquires a competitor to gain control of its customer base and eliminate rivalry?
Answer
Horizontal integration
Horizontal integration occurs when a company acquires or merges with a direct competitor operating at the same level of the supply chain. A classic example is Disney's acquisition of 21st Century Fox in 2019, which absorbed a rival film studio to expand its content library and reduce competition.
💡 Did you know?
When Standard Oil horizontally integrated by absorbing over 40 rival refineries in the 1870s, it controlled roughly 90% of U.S. oil refining within a decade.
Other options people guess
- Diversification
- Market penetration
- Strategic alliance
Topics
- business-strategy
- mergers-acquisitions
- corporate-growth
- competition
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