Horizontal Combination (Noun)
Meaning
Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level.
Classification
Nouns denoting acts or actions.
Examples
- The large conglomerate initiated a horizontal combination strategy by acquiring three rival manufacturing firms and consolidating their operations under a single umbrella.
- This form of corporate reorganization often occurs through a horizontal combination where firms within the same industry are absorbed and resources are combined for efficiency.
- Through horizontal combination, several local food processors merged to become one large-scale firm capable of reducing production costs.
- To compete in a highly competitive market, multiple producers chose a horizontal combination and transformed into one cohesive firm sharing equipment, supplies, and knowledge.
- One method used to decrease operational expenses in highly competitive markets is by participating in a horizontal combination and reaping the benefits of reduced supply chain expenses and pooled human capital.