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Horizontal Integration Homework Help for Getting the Best Notes at Cheap Price

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Meaning of Horizontal Integration

One of the problems faced by learners while doing an assignment is not understanding this topic correctly. It is primarily business activities’ additional acquisition which has the same value chain level in different or similar industries. Such achievements are acquired by expanding internally through operating profits’ reinvestment or expanding externally through a particular merger and acquisition (M&A).

Integration of various firms take part in same production stage; horizontal integration allows all the companies at that particular level to share their resources. To get more help on this, a student can get our customised solutions from our Horizontal Integration homework help experts.

Advantages of Horizontal Integration

There are many advantages of horizontal integration. Various examples of it include oil refineries’  additional acquisition by an oil company or manufacturer of light truck’s acquisition by a manufacturer of automobile. It offers benefits like favourable scale of economies, scope or economies, market power increment and cost reduction associated with trade in international market by foreign market operations. Vertical and horizontal integration is different as in horizontal integration firms expand but into various activities such as downstream or upstream activities.

Disadvantages of Horizontal Integration

This integration though has many advantages can also have certain adverse effects. This can be understood through the example, many times mergers and acquisitions do not produce the added value or synergy which was expected. This destroys combined entity’s overall value in this integration.

The example which is given may result in many things like oligopoly or monopoly which is illegal in many countries. In this integration, combined entity reduce flexibility which makes it hard to manage a company or an organisation.  To get more assistance on this, order our Horizontal Integration assignment help.

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