A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

Question

Quizplus · Accepted Answer

Horizontal integration involves the acquisition of companies that operate in the same industry and at the same level of the supply chain. Purchasing a chain of gasoline stations would be an example of vertical integration, as the trucking company is acquiring an entity in a different level of the supply chain.

A Trucking Company That Grows by Purchasing a Chain of Gasoline