Horizontal integration is the acquisition of additional business activities that are at the same level of

the value chain in similar or different industries.

Advantages of Horizontal Integration:
- Economics of scale: Selling more of the same
product in different parts of the world
- Economics of Scope: Sharing resources common
to different products. (Synergies)
- Increased Market Power
- Reduction in cost

Disadvantages of Horizontal
Integration:
- Costs
- Increased work load
- Increased Responsibilities
- Anti-trust issues Creating a
monopoly

Co-operatives: Shared ownership, collaboration

between members, democratic decision
making, support network, shared resources,
profit returned to members.