Definition of Horizontal Integration
Horizontal integration occurs when a company acquires a company that has a similar product offering in that industry at the same level of the supply chain. Unlike vertical integration where the company acquires a company that works just before or after that company in the supply chain.
Horizontal integration allows companies to increase their market share and maximize profits.
Example of Horizontal Integration:
Uber a car riding app acquired Careem, that has a similar business but in a market such as the middle east and central Asian markets. In these markets, the acquisition of Careem helped Uber in expanding its market share and profits.