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What is the difference between vertical and horizontal integration strategies?

What is the difference between vertical and horizontal integration strategies?
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Answer #1

Vertical and horizontal integration strategies are employed by firms to gain better control, market share, economies of scale, etc.
Vertical Integration: When a company acquires a firm across the value chain i.e. it is aiming to take some operations inhouse. The acquired firm operates in the same industry but at a different stage in the value chain.

Horizontal Integration: When a company acquires a firm selling a similar/same product within the same company. This helps the company gain market share and eliminate competition.

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