The concept of horizontal integration is a vital part of the business landscape. It refers to the process of a company joining forces with or acquiring outright other businesses involved in the same or related activities. Horizontal integration in the forex market is a strategy used to gain larger market share by acquiring or merging with other companies in the forex industry. In this article, we will go over some examples of horizontal integration forex, discussing how it works and the potential benefits. 1. Nike Inc.: Nike is a multi-level example of horizontal integration. Nike owns not only its own retail stores (NikeTown, etc.), but also has a control stake in other apparel retailers, such as Foot Locker and The Finish Line. This business structure allows Nike to maintain control of its product lines and pricing, even when it is carried by different retail outlets.
2. CBS Corporation: CBS Corporation owns and licenses many popular TV channels, including its own broadcast channels (CBS, CW), cable channels (Showtime, CBSSports) and local television stations. This example of horizontal integration allows CBS to reach a larger audience with its own products and services.
3. McDonald’s: McDonald’s is another example of horizontal integration. The fast food giant owns not only its own restaurants, but also franchises. This allows McDonald’s to control both its brand and products no matter who is selling it.
4. Microsoft: Microsoft is a perfect example of a horizontal integration. Microsoft owns both the hardware (Xbox, Surface Pro, etc.) and software (Windows OS, Office Suite, etc.) side of the technology industry. This allows Microsoft to cover the majority of their user’s needs without relying on other companies.