Horizontal integration is a competitive strategy that can result in economies of scale. The advantage arises due to the, competitive edge, increased market share, and business expansion. ... However, these business combinations may create a monopoly power in an industry, which may be a disadvantage to the consumer.

Does horizontal integration cause monopoly?

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. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.

What did horizontal integration result in?

Horizontal integration is a competitive strategy that can create economies of scale, increase market power over distributors and suppliers, increase product differentiation and help businesses expand their market or enter new markets.