Horizontal Integration

Summary of Horizontal Integration

Also known as horizontal expansion, the expansion of a firm through the acquisition of additional production capacity in its primary field. For example, a shipping company may expand horizontally by acquiring other vessels on the same trade route.

(Main Author: William J. Miller)

Horizontal Integration and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Horizontal Integration: The merger of two or more firn1s producing essentially the same product or service. See also vertical integration.

Horizontal Integration in Aging Law

Concept of Horizontal Integration in the context of Community Health Care and Services for Older Persons, published by the World Health Organization (WHO):Merging of two or more firms at the same level of production in some formal, legal relationship. In hospital networks, this may refer to the grouping of several hospitals, the grouping of outpatient clinics with the hospital, or a geographic network of various health care services. Integrated systems seek to integrate both vertically with some organizations and horizontally with others. See “vertical integration”.

Resources

See Also

• Enterprise
• Joint Enterprise
• Joint Venture