Horizontal vs. Vertical Integration


The concept describes the basics and importance of supply chain integration and helps managers and practitioners to identify the level of influence the company has over its supply chain's suppliers and buyers.

Technique Overview

Horizontal vs. Vertical Integration

Horizontal vs. Vertical Integration Definition

Horizontal integration relates to the merger of firms at the same stage of production in the value chain, in the same or different industries, whereas vertical integration refers to the merger of companies at different stages of production and/or distribution in the same industry (Hindle, 2008).

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Business Evidence

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Business Application

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Professional Tools

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Further Reading

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Horizontal vs. Vertical Integration References (4 of up to 20) *

  • Baker, J.B. (2010) Market Concentration in the Antitrust Analysis of Horizontal Mergers. In K.N. Hylton (Ed.), Antitrust Law and Economics, Edward Elgar Publishing, Northhampton, MA.
  • Baptiste, R.G. (2002) The Merger of ACE and CARE: Two Caribbean Banks. Journal of Applied Behavioral Science, Vol. 38(4), pp. 466-80.
  • Cai, H. and Obara, I. (2009) Firm Reputation and Horizontal Integration. The RAND Journal of Economics, Vol. 40(2), pp. 340-63.
  • Cartwright, S. (2005) Mergers and Acquisitions: An Update and Appraisal. International Review of Industrial and Organizational Psychology, Vol. 20, pp. 1-38.

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