Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-You have decided to purchase a competing chain of fast-food restaurants called Sandwich King.Once the acquisition is completed,you plan to combine their operations with those of Clubhouse Gourmet.This is an example of which growth strategy?

Question

Quizplus · Accepted Answer

Horizontal integration involves acquiring or merging with a competitor to increase market share or gain access to new markets. In this scenario, Clubhouse Gourmet is purchasing a competing chain of restaurants, which falls under the definition of horizontal integration. The other options (concentration, related differentiation, and vertical integration) do not accurately describe the growth strategy being employed in this scenario.