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Horizontal Integration

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Definition of 'Horizontal Integration'

When a company expands its business into different products that are similar to current lines.
Investopedia Says

Investopedia explains 'Horizontal Integration'

A hot dog vendor expanding into selling hamburgers would be an an example of horizontal integration. Compare this to vertical integration.

Related Definitions

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    Vertical Integration

    When a company expands its business into areas that are at different points of the same production path.
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  • Acquisition Indigestion

    A slang term describing an acquisition or merger in which the companies involved have trouble integrating with one another. Acquisition indigestion may also describe a situation in which ...
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  • Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it will result in improved efficiency and cost savings. For ...
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    • Midstream

      Term used to describe one of the three major stages of oil and gas industry operations. Midstream activities include the processing, storing, transporting and marketing of oil, natural ...
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    • Monopoly

      A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of ...
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    • Upstream

      Operations stages in the oil and gas industry that involve exploration and production. Upstream operations deal primarily with the exploration stages of the oil and gas industry, with ...
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