horizontal combination
Noun: 1. A business consolidation: The merger or acquisition of multiple companies that operate at the same stage of the production process or within the same industry. This type of combination aims to reduce competition, increase market share, and achieve economies of scale by pooling similar resources and operations.
This term is used primarily in economics, business, and corporate strategy contexts to describe a specific type of corporate merger or integration. - It describes a strategic move to consolidate firms that are competitors or that perform similar functions. - It is often contrasted with vertical combination (merging firms at different production stages) and conglomerate combination (merging unrelated businesses).
- The horizontal combination of the two leading smartphone manufacturers created a dominant player in the market.
- Antitrust laws sometimes scrutinize horizontal combinations to prevent the formation of monopolies.
- The company grew rapidly through a series of horizontal combinations, acquiring its direct rivals.
- Economic Analysis: In economic theory, a horizontal combination is analyzed for its impact on market concentration, pricing power, and consumer choice.
- Regulatory Context: The term is frequently used in legal and regulatory discussions concerning antitrust or competition policy.
- Horizontal Integration (n): A nearly synonymous term often used interchangeably with "horizontal combination" to describe the same process of merging competitors.
- Horizontal Merger (n): A specific type of horizontal combination executed through a formal merger agreement.
- Merger of competitors
- Industry consolidation
- Horizontal integration
- Vertical combination/integration: The combination of firms operating at different stages of production (e.g., a manufacturer merging with a supplier).
- Conglomerate merger: The combination of firms in unrelated business activities.
-
absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
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