It is when a company expands its
business into different products that are similar to current
lines. Merging with another firm just like yours, for example, two biscuit
makers becoming one. Contrast with vertical integration, which is merging with
a firm at a different stage in the supply chain. Horizontal integration often
raises antitrust concerns, as the combined firm will have a larger market share
than either firm did before merging.
What does
horizontal integration raise?
A. Profits
The answer :
In my opinion,
yes increase profits, because : companies that do horizontal
integration with related companies in the business or production. That labor
and working together leaders how to increase profits. Such as : 1. Trying to
produce a quality product, innovative, in order to attract the hearts of
consumers, 2. Trying to do a sales strategy so that the product or production
demand. And if the best-selling products manufactured. It shows increase
profits for companies that do horizontal integration with related companies.
B. Antitrust concerns
The answer :
In my opinion,
raising fears of anti-monopoly, because : companies that do horizontal
integration with related companies, can give rise to antitrust concerns. The
problem may be due to : 1). Horizontal integration company that has been
working to produce or create a quality product. 2). There is only a horizontal
integration company personnel who want to dominate the market and want to
achieve market share. So the company is doing the horizontal integration with
related companies merentan undertake anti monopoly. Then came the anti-monopoly
concerns in companies that perform horizontal integration with related
companies.
C. Products
The answer :
In my opinion,
yes improve the product, because : 1 the technology used increasingly
inadequate, in the manufacture of products in the company's horizontal
integration, 2 equipment is used more and more complete, in the manufacture of
products in the company's horizontal integration, 3 labor used increasingly
adequate in producing horizontal integration within the company. This is
because : Companies doing the horizontal integration with related companies,
which can increase production yield becomes : quality, producing products with
higher numbers, varied or diverse, new products, and others - more relevant.
D. Supplies
The answer :
In my opinion, did not increase the need, for : Companies doing the horizontal integration with related companies. Complementary needs - needs required or used in the company's horizontal integration. As complementary needs : technology, equipment, and labor, at the company's horizontal integration. So the need for horizontal integration within the company fulfilled. So no, increases the need for horizontal integration within the company.
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