Horizontal integration is where a larger business takes over another one of its kind. For example one large company owning many radio stations. Global radio owns Heart fm, Galaxy Fm, LBC and many more, this is a form of horizontal integration. For the company that own many companies, they have both advantages and disadvantages.
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There may not be a wide range of variety available in these companies, for e.g. the radio stations may have the same news on.
More money from the owner to run these businesses.
Much more work is needed in order to make all the businesses succeed and make a profit.
Biased information can be sent out a lot due to so much ownership from the company.
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For the owner itself this can lead to a huge amount of profit being made from various businesses it owns.
Competition lessens.
Lot more consumers.
Vertical integration is when businesses come together because they have something in common. It’s not taken over, but they just work together to form one bigger company. They own everything which is involved in the business. For example, where the product is too where the products are sold off. Oil companies seem to be vertical integrated.
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If one company is doing really well, the amalgamation of the two business may cause some sort of downfall for some of the business
This risk can go horribly wrong; it’s a risk which needs to go well.
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If two really big companies come together, which are very popular among the public they can make a big profit.
More capital can be put towards making the new company more successful.
For customers this can be better for them as they can get the best of both of the companies in one.
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