Horizontal integration supports the achievement of a __________ strategy.

Question

Quizplus · Accepted Answer

Horizontal integration involves acquiring or merging with other companies that operate in the same industry and at the same level of the value chain. This allows the company to achieve economies of scale, reduce costs, and increase market power. These capabilities are beneficial for companies pursuing a cost leadership strategy, as they can offer lower prices than competitors while maintaining profitability. Additionally, horizontal integration can also help support a differentiation strategy by providing access to complementary resources and capabilities that allow for the development of new and unique products or services. Therefore, the best choice is B, as horizontal integration can support both cost leadership and differentiation strategies.

Horizontal Integration Supports the Achievement of a __________ Strategy