Horizontal Integration Strategy

The video tutorial explains organizational strategy, focusing on growth strategies through integration. It distinguishes between vertical and horizontal integration, detailing how each operates within the value chain. Vertical integration involves combining with suppliers or distributors, while horizontal integration involves collaboration with businesses at the same value chain level, such as competitors or complementary goods providers. Examples are provided to illustrate these concepts.

Which of the following is NOT a type of organizational strategy?

• Retrenchment

• Expansion

• Stability

• Growth

What does vertical integration involve?

• Combining with competitors

• Working with suppliers and distributors

• Merging with unrelated businesses

• Partnering with complementary product providers

Horizontal integration typically involves combining with businesses at which stage of the value chain?

• Different stages

• Earlier stages

• Later stages

• Same stage

Which of the following is an example of horizontal integration?

• A manufacturer acquiring a supplier

• A retailer merging with a distributor

• A company partnering with a competitor

• A business buying a raw material provider

Horizontal integration can involve working with which type of businesses?

• Distributors

• Competitors

• Suppliers

• Retailers