describe the difference between horizontal and vertical integration

Question

anonymous · Answer

Horizontal integration is when a company buys up or merges with businesses that are like it. For example, a car dealership might merge with or buy up other car dealerships to expand its reach. 

Vertical integration is when a company buys up or merges with businesses that have something to do with what it does -- they don't have to be exactly like it. For example, a car maker might buy a car dealership to help its sales, or an accessories company like Pep Boys to expand its reach into the aftermarket. Neither a dealership or Pep Boys build cars, but they help the car maker's business in other ways.