Horizontal Integration

integrative of companies that have similar ranges of activity in production and marketing

In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. To get this market coverage, several small subsidiary companies are created. Each markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the horizontal integration of marketing. The horizontal integration of production exists when a firm has plants in several locations producing similar products. Horizontal integration in marketing is much more common than horizontal integration in production. It is contrasted with vertical integration.
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Noun
1. absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
(synonym) horizontal combination
(hypernym) consolidation, integration

a strategy for growth in which a company develops by seeking ownership of, or some measure of control over, some of its competitors. See Backward Integration; Forward Integration.