Nahar Gift Shop (Scenario)
Nisreen has just won the equivalent of $60,000 in a talent competition. Subsequently, she decides to start her own business and opens a gift shop.
-Nisreen is successful after the first 3 years, and she is approached by a competitor who is nearing retirement age. The competitor is interested in selling his business to Nisreen. For Nisreen, this would be a(n) ________strategy.

Question

Quizplus · Accepted Answer

Horizontal integration involves the acquisition of a competitor in the same industry. In this scenario, the competitor is in the same business as Nisreen, and purchasing their business would allow Nisreen to increase her market share and potentially eliminate a competitor. It would also provide Nisreen with access to the competitor's customer base and resources, which could enhance her own business. Therefore, horizontal integration is the best choice in this scenario.