Horizontal integration

Horizontal integration is the widening of a business at the same point in the supply chain. For example, supermarkets that are moving towards selling a larger variety of non-food items are increasing their level of horizontal integration.

The advantages of horizontal integration can lie in reaching the customers (if you are already selling them one thing, use the opportunity to sell more) but can include economies of scale in purchasing, logistics and operations.

Businesses can also integrate vertically.

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