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Horizontal integration is the practice of a company owning several units on the same level of the supply chain.
Having covered the entire supply chain, LookOut’s management decided next to initiate horizontal integration.
Also called lateral integration, a company usually integrates horizontally in order to expand to a product or service related to its existing business. Such expansion is expected to bring economies of scale through integration and synergies. Horizontal integration is contrasted to vertical integration, which entails expansion up and/or down a single supply chain.
Horizontální integrace je stav, kdy společnost vlastní několik jednotek na stejné úrovni dodavatelského řetězce.
Poté, co firma pokryla celý dodavatelský řetězec, se management společnosti LookOut rozhodl zahájit horizontální integraci.
Někdy se nazývá také laterální integrace. Společnosti obvykle provádějí horizontální integraci, aby expandovaly do produktu nebo služby související se svým stávajícím podnikáním. Očekává se, že takováto expanze přinese úspory z rozsahu prostřednictvím integrace a synergií. Horizontální integrace se staví do protikladu s vertikální integrací, která zahrnuje expanzi vzhůru nebo dolů podél jednoho dodavatelského řetězce.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
