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A Monopoly created through horizontal integration is called a Horizontal Monopoly .


AN EXAMPLE

The GAP Inc. retail clothing corporation is a good example of a business that practices horizontal integration. GAP Inc. controls three distinct companies, Banana Republic , Old Navy , and the GAP brand itself. Each company has stores that market clothes tailored to appeal the needs of a different group. Banana Republic sells more expensive clothes with a more "upscale" image, the GAP sells "moderately" priced clothes that appeal to middle-aged men and women, and Old Navy sells "inexpensive" clothes geared towards children and teenagers. By using these three different companies, GAP Inc. has been very successful at controlling a large segment of the retail clothing industry.

In the late nineties the finance industry experienced much horizontal integration, with numerous mergers between companies in the retail banking, investment and insurance industries.


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