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- what is horizontal integration? 8. what is vertical integration? 9. why did the government almost break up microsoft?
Horizontal integration is when a company acquires or merges with other companies in the same industry and at the same stage of the production - distribution process. It helps in increasing market share, reducing competition, and achieving economies of scale. Vertical integration is when a company expands its operations either backward (towards the sources of raw materials) or forward (towards the end - consumers). It gives more control over the supply chain. The government almost broke up Microsoft due to antitrust concerns. Microsoft was accused of using its dominant position in the operating system market to stifle competition in related software markets.
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- Horizontal integration is the acquisition or merger of companies in the same industry at the same production - distribution stage to increase market share, reduce competition, etc.
- Vertical integration is a company's expansion either backward (towards raw materials) or forward (towards consumers) to gain more supply - chain control.
- The government almost broke up Microsoft due to antitrust concerns over its use of dominant market position to stifle competition in related software markets.