Name: Jovie Magno Vista Year and Section: 1 BSE-A1

Course Code: GE 03: The Contemporary World

1. What is horizontal market integration?

A business approach known as "horizontal integration" involves one company
expanding its operations within a certain industry at the same rate. Several
businesses employ horizontal integration as a growth strategy to strengthen their
position within their sectors and to get an advantage over their rivals. Furthermore,
horizontal integrations assist businesses in growing in size, diversifying their product
lines, lowering competition, and entering new markets.

2. What is vertical market integration?

Vertical integration is a business approach that promotes expansion through the
simplification of processes. When one business buys a manufacturer, vendor,
supplier, distributor, or other associated business in the same sector, this happens.
Companies can integrate vertically by moving backward or forward. Backward
integration takes place when a company chooses to acquire another firm that
produces an input good for the acquiring company's product. On the other hand,
forward integration takes place when a business decides to take charge of the post-
production process.