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Horizontal integration is basically the process used by organisation to expand business by increasing the production. This is done by a variety of measures. This is especially accomplished by acquiring business establishments which happen to be in the same strata or by merging with businesses which happen to be in the similar stage of production.The merging of Disney with Pixar in movie production industry can be taken up for instance. A company which doesn’t want to be taken over is also at times forced to accept takeover; this is called hostile takeover. As the very name suggests, being in the same level or being horizontal, it is suitable for the business establishments to share resources within them. A monopoly is seen in a market where almost all the major competitors of a product or service merge leaving a very little competition. It is necessary to state that horizontal integration can also be achieved internally by relocating investments through the profit of produce.Horizontal Integration strategy Assignment Help shall help the students understand the strategies used in the single product line business.
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The different growth strategies explained in Horizontal Integration Strategy Assignment Help are
• Holding relative position in market: This strategy helps to hold a competitive position in the market. The growth is directly proportional to demand. The funds for supporting this growth are found through debt financing, operation and equity financing.
• Increasing market share: This can be achieved majorly by two ways. Either by rationalising i.e. by reducing the costs or by segmenting the market so as to find the most potential segments.It might be difficult to understand all the aspects of horizontal integration, for further insight on strategy, go through Horizontal Integration strategy Assignment Help.
• Strengthening relative position in market through single product: Getting into the international markets with existing product line opens up a whole opportunity for new profits. It always is subject to some risks too. Surplus money at hand along with available funds is used by companies to venture into the foreign markets. As every country has a unique characteristic of socio-cultural and political diversity, the methods and planning needs thorough supervision. For detailed account of strategies involved in the horizontal integration, refer Horizontal Integration strategy Assignment Help.
• Diversification of product line for strengthening of position: The diversification of product lines in domestic as well as international markets also strengthens the position. As by geographical variation the needs of products also vary. The firms may either opt for a wide diversification in product line or may choose to diversify one from many products to diversify in different geographical areas.
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