What is the difference between horizontal and vertical integration?

Horizontal integration is an expansion strategy that involves the acquisition of another company in the same business line. Vertical integration is an expansion strategy where a company takes control over one or more stages in the production or distribution of its products. Why Are Horizontal and Vertical Integration Important?

What is an example of horizontal integration?

Many mergers that hit news headlines are examples of horizontal integration. If a company acquires or merges with another company and both firms are in a very similar industry, it is most likely an example of horizontal integration. Specific examples include: What Is the Difference Between Horizontal Integration and Vertical Integration?

What is an example of vertical integration?

The Heinz and Kraft Foods merger is an example of horizontal integration in producing processed food for the consumer market. Target, which has its store brands, is an example of vertical integration. It owns the manufacturing, controls the distribution, and is the retailer, offering products at a much lower price by cutting out the middleman.