Horizontal integration

Okay kiddo, let's imagine you have a toy store and you sell dolls and action figures. One day, you meet another toy store owner who sells toy cars and planes. You both decide to become friends and work together to make your toy stores even better. This is called horizontal integration.

Essentially, horizontal integration is when two companies in the same industry or market join forces to expand their business and reach more customers. They can do this by merging together or by one company buying the other.

For example, if a fast food restaurant chain decided to buy another fast food restaurant chain, they could offer their customers a wider range of menu items and locations to visit. This way, they can make more money and compete better with other fast food chains.

Horizontal integration can be helpful for companies that want to grow quickly without spending as much time and money developing new products or services. It can also help companies gain a competitive advantage by having more resources and expertise.