Examines the effectiveness of the concept of horizontal expansion on contemporary businesses.
Written in 2004; 1,656 words; 5 sources; APA; $ 53.95
Paper Summary:
Horizontal expansion is a process through which companies acquire or develop businesses engaged in the same stage of marketing or distribution. This paper examines the impact of horizontal expansion on companies to see whether it is an effective strategy for firms seeking expansion. The paper identifies the effectiveness and limitations of this strategy.
From the Paper:
"Up until recently, the traditional theory of industrial organization has remained the mainstream approach in analyzing corporate integration. David A. Besanko, David Dranove and Mark Shanley (2000), explain that the benefits of horizontal integration are in economies of scale when a merger takes place between firms producing the same kinds of products, and in synergies such as economies of scope in case of a merger between firms whose products have little or nothing in common with each other."
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