What does horizontal integration involve?

Horizontal integration involves the acquisition of another company operating in the same business line or industry. This strategy can increase market share, reduce competition, achieve economies of scale, and leverage synergies between the businesses. By growing in this way, a company can enhance its product offerings, expand its customer base, and increase its overall strength and market presence within its specific industry.

For example, if a beverage company acquires another company that produces similar types of drinks, it consolidates its position in the market, potentially leading to greater pricing power and efficiency. This form of integration contrasts with vertical integration, which focuses on acquiring businesses at different stages of the supply chain.

The other options, while valid business strategies, do not align with the concept of horizontal integration. Acquiring companies in different industries pertains to diversification rather than horizontal integration. Implementing new marketing strategies and expanding into new geographic markets are tactical approaches but do not specifically involve acquiring similar companies in the same sector.