Vertical Integration, Vertical and Horizontal Integration, Lateral Integration
Horizontal integration is the expansion of a corporation to include other previously competitive enterprises within the same sector of goods or service production. Horizontal integration takes place when one automobile company takes over another automobile company or one telecom company takes over another telecom company. The process of horizontal integration is characteristic of capitalism and capitalist economies which have a marked tendency for sectoral concentration into fewer and fewer enterprises and business conglomerates. Horizontal integration is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. To get this market coverage, several small subsidiary companies are created.
Each markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the horizontal integration of marketing.
The horizontal integration of production exists when a firm has plants in several locations producing similar products. Where the products of both firms are similar, it is a merger of competitors. Where all producers of a good or service in a market merge, it is the creation of a monopoly. If there are only a few competitors, it is termed an oligopoly. Horizontal integration in marketing is much more common than horizontal integration in production.
Horizontal Integration in
Horizontal Integration in Knowledge Management can be defined as the distribution of knowledge across diverse business units. A lesson learned captured by the manufacturing group then used by someone in technical support to help solve a problem would be an example of Horizontal Integration. A corporation’s most valuable assets are its workforce and information assets. Horizontal Integration improves the value of both assets by better educating the workforce and improving the usage, that is, value of information.
Horizontal Integration and Relational Contracting: An Application to Local Public Services - Claudine Desrieux, University Paris I Pantheon-Sorbonne - Centre Maison des Sciences Economiques, Eshien Chong, University of Paris XI - ADIS GRJM, Stephane Saussier, IAE - University of Paris I Sorbonne, August 26, 2008
Abstract: Legal frameworks, especially in Europe, encourage private participation and competition in the management of public services. However, many local public authorities concentrate the various services they have in charge in the hands of a single operator, leading to horizontal integration which a priori minimizes the positive effects of competition. The following article tries to understand why vertical disintegration is regularly combined with horizontal integration. Results of our model show that under some conditions, this may lead to better performance at lower cost for the public authority. Such a proposition is tested and corroborated using an original database concerning the contractual choices made by 5000 French local public authorities in 1998 and 2001.
Medellin and the Horizontal Integration of International Human Rights Law in US Courts - McGuinness, Margaret.
Abstract: Medellin v. Dretke and its antecedent cases reflect the success of horizontal transnational networks in bringing international law home to adjudication of death penalty cases in the United States.