Horizontal Integration

Created by Colin McKenzie and Kaitlyn Cullen

Horizontal Integration is  one company taking over other companies that produce the same or similar products. This is one way to expand a company.

Historical Example-Rockefeller

John D. Rockefeller owned Standard Oil, his oil refinery company. It was already a highly successful company, but you always look to gain more success. Rockefeller did this by buying as many refineries as he could. Instead of out selling them he bought them. By 1879 his company refined 90% of all U.S oil. By John Rockefeller doing this he became the # 1 oil company in the U.S. He won the monopoly by bringing his company to the top and succeeding in the field of oil.

Modern Example-McDonald's

A modern day example of Horizontal Integration would be McDonald's fast food restaurants. McDonald's  would grow by buying out other fast food chain restaurants like Burger King or Wendy's. Instead of support themselves they would buy out these other companies so that they would be the only choice when a person wants some fast food. By McDonald's taking over similar companies they would own all the fast food businesses in that field making them the only choice for fast food, and having themselves grow and become richer.

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