Which business strategy involves taking control of most or all competitors selling the same product?

Which business strategy involves taking control of most or all competitors selling the same product?

• A. Diversification
• B. Horizontal Integration
• C. Vertical Integration
• D. Monopoly

Answer: (B)

Horizontal integration focuses on taking control of rivals that sell the same product. By merging with or buying most or all of the competing firms in the same market, a company can boost its market share, reduce competition, and realize efficiencies from combining production, marketing, and distribution. This directly matches the idea of gaining dominance by owning the other firms that compete in the same space. Diversification would mean expanding into different products or markets, not acquiring competitors in the same line. Vertical integration involves controlling the supply chain—suppliers or distributors—rather than the competing firms in the same market. Monopoly describes the market structure that can result from consolidation, not the specific strategic move of acquiring rivals.

Horizontal integration focuses on taking control of rivals that sell the same product. By merging with or buying most or all of the competing firms in the same market, a company can boost its market share, reduce competition, and realize efficiencies from combining production, marketing, and distribution. This directly matches the idea of gaining dominance by owning the other firms that compete in the same space.

Diversification would mean expanding into different products or markets, not acquiring competitors in the same line. Vertical integration involves controlling the supply chain—suppliers or distributors—rather than the competing firms in the same market. Monopoly describes the market structure that can result from consolidation, not the specific strategic move of acquiring rivals.