All of the following are benefits of horizontal integration EXCEPT:
A) reduced risk of coming into conflict with the FTC.
B) increased product differentiation.
C) reduced industry rivalry.
D) increased bargaining power over suppliers.
E) reduced cost structure.

Question

Quizplus · Accepted Answer

Horizontal integration refers to a strategy where a company merges or acquires another company in the same industry in order to achieve economies of scale, increase market shares, and reduce competition. The other options listed are all benefits of horizontal integration, but reduced risk of coming into conflict with the FTC (Federal Trade Commission) is not a benefit as horizontal integration can still raise antitrust concerns and potentially result in FTC scrutiny.

All of the Following Are Benefits of Horizontal Integration EXCEPT