Horizontal integration allows companies to obtain bargaining power over suppliers or buyers and increase their profitability at the expense of suppliers or buyers.

Question

Quizplus · Accepted Answer

Horizontal integration allows companies to expand their operations into the same level of the supply chain, which can give them greater leverage in negotiations with suppliers or buyers. This can lead to increased profitability for the company, but may come at the expense of suppliers or buyers who may have less bargaining power in the relationship.

Horizontal Integration Allows Companies to Obtain Bargaining Power Over Suppliers