When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). The social media giant merged with Instagram in 2012 for a whopping amount of $1 billion. The reason why they are part of the horizontal integration is because looking at the buying chain they are on the exact same level. Companies Involved in HI. Examples of Horizontal Integration. PeopleSoft. Firms like Mafatlal, National Textile Corporation, etc have opened up retails stores owned by them, in order to have an effective control over distribution activities. Dec 2015: Domino's buys largest German pizza chain for $86m. HP. Integration of Exxon and Mobil, oil companies to increase market dominance is an example of Horizontal Integration. Facebok. Examples of Horizontal Integration. Two manufacturers of retail homes merge. Porsche. Wyeth. We solve complex challenges across two distinct businesses: Horizontal Digital. Examples of Horizontal Integration. Examples Of Horizontal Integration Facebook – Instagram. Horizontal Integration Example # 2 – Marriott-Starwood. It is not to be confused with lateral integration, which sees the merger of two companies that sell related products or services but are not in direct competition with each other. After looking at the definition and how it happens, we can now have a better insight at the real-world examples of horizontal integration that have happened; Facebook and Instagram are one of the most popular mergers in this millennium. Two option Acquisition Merger HI can occur in a form of mergers or acquisitions. Baskey has grown in size over the years because it has been aggressively pursuing other companies that are in the same market. For example, in a systematic review of literature examining vertical integration, Machta et al. En management, l'intégration verticale désigne un processus qui vise à contrôler toute la chaîne de valeur, depuis la production des matières premières, jusqu'à la distribution des produits finis, en passant par leur fabrication. This sometimes occurred in form acquisition, merger or takeover of companies in same industry. This will provide the flour producer greater control over the flour industry which will result in greater market share and monopoly. Cookies help us improve your website experience. Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain.A company may do this via internal expansion, acquisition or merger. T-Mobile. Wyeth. Since the companies work together, they yield more services or products. Horizontal integration is most common among conglomerates, which are corporations made up of a number of smaller companies spanning several industries. Horizontal Integration Examples. HI can occur in a form of mergers, acquisitions or hostile takeovers. Acquiring. An example of horizontal integration is the First Choice Group and this is because they own First Choice Hypermarket as well as First Choice Travel Agency. An example of horizontal integration would be the flour producer acquiring or merging with a number of flour producers within the area or producers that are dispersed geographically. Some of the examples of horizontal integration are as follows: Acquiring Company. For example, Baskey Energy is an oil company, in West Texas. Pixar operated in the same animation space as Disney, but its animated movies used better technology and were innovative. Advantages of Horizontal integration Higher Efficiency. The decision whether to employ vertical or horizontal integration has a long-term influence on the business strategy of a company. Examples of Horizontal Integration: A hardware store owner takes over three other long established hardware stores, former competitors in the same region. Motorola Mobility. T-Mobile. The new operator retains the names and clientele of each of the stores, but retains their suppliers and markets each separately to retain the valuable goodwill and local identity of the stores. Disney started off as an animation studio that targeted the families and majorly children. As per me an apt example of Horizontal Integration will be You Tube, which was taken over my Google primarily because it had a strong and loyal user base. Acquired. For example, a manufacturer of … Horizontal Talent. Here are several examples of horizontal integration: Two manufacturers of electric engines merge. Horizontal integration is a move to offer new products and services at the same level of the supply chain. a financial document that shows how much money (revenues) came in and how much money (expenses) was paid out . Volkswagen. This is typically seen as a competitive strategy. Acquisition of Red Hat by IBM. Horizontal Integration Examples: The Standard Oil Company buying 40 refineries An automobile manufacturer buying a sport utility vehicle manufacturer A radio station that also owns a newspaper and magazine 5. Compaq. They also shared similar production stages in their photo-sharing services. An automobile manufacturer's acquisition of a sport utility vehicle manufacturer. Dec 2015: Domino's buys largest German pizza chain in $86m deal; Dec 2015: US chemical giants DuPont and Dow Chemical Co agree to merge in deal valuing combined company at £86bn, with plans to split into three. Jan 2016: UK DIY chain Homebase sold to Australian retail giant Wesfarmers for £340m. Cadbury. Another notable example of a horizontal integration was Disney’s $7.4 billion acquisition of Pixar in 2006. Conglomerates usually consist of a parent and several subsidiaries. Vertical integration is a move to control more of your supply chain. Horizontal integration strategy stems from a desire to increase market share by an entrepreneur or create a new company based on common know-how and combined operational processes. Some examples of horizontal integration include: The Standard Oil Company's acquisition of 40 refineries. In April 2012, Facebook acquired Instagram for $1 Billion. AT&T. They want to make sure they can benefit from them. Oracle. Income Statement. AT&T. Horizontal Integration helps to acquire control over the market, but Vertical Integration helps in gaining control over the whole industry. Pharmacy. Dec 2015: US chemical giants DuPont and Dow Chemical Co agree to merge in deal worth £86bn + plans to split into three. Telecom. Company Action. 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