Horizontal Integration

A growth strategy where a business expands by acquiring or merging with competitors operating at the same level of the value chain, increasing market share without moving up or down the supply chain.

Horizontal integration rapidly increases market share, eliminates competitors, and creates economies of scale. It is the dominant growth strategy for businesses seeking category leadership.

A founder who runs a successful online fitness platform acquires a smaller competitor targeting the same demographic. The combined audience gives her market leadership and reduces her marketing cost per acquired customer significantly.