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OpenStudy (anonymous):

Horizontal integration differs from vertical integration in that it what?

OpenStudy (praetorian.10):

Horizontal integration is the process of merging similar industries, industries that produce similar products. Horizontal integration would include tactics like buying competing companies that produce the same goods as you do. Vertical integration is the process of buying out suppliers of that particular industry. For example, a steel company would have an advantage over competitors by vertical integration if that company bought out places like coal fields or iron mines, places that competing steel companies rely on to make their steel. This would let you control the raw materials and transportation systems. The main difference is that horizontal integration buys the competing companies while vertical integration aims at the raw material sources necessary to produce that product

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