In which situation would horizontal integration be an especially effective strategy?
A)When decreased economies of scale provide major competitive advantages.
B)When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition.
C)When an organization competes in a slowing industry.
D)When an organization has neither the capital nor human talent needed to successfully manage an expanded organization.
E)When competitors are succeeding due to managerial expertise or having particular resources an organization possesses.

Question

Quizplus · Accepted Answer

Horizontal integration can be especially effective when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition. This can result in increased market power, cost savings through economies of scale, and increased market share, which can lead to higher profits.

In Which Situation Would Horizontal Integration Be an Especially Effective