How did horizontal integration help businesses? (5 points)Question 1 options:1) It reduced the costs along the supply chain, from mining to transportation to manufacturing.2) It established a company as a monopoly by incorporating all of the competition.3) It assigned one worker to a job, which helped reduce wasted time and accelerate manufacturing.4) It provided quick and easy access to transportation methods, such as canals, rivers, and railways.

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19-09-2019
Business

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How did horizontal integration help businesses? (5 points)Question 1 options:1) It reduced the costs along the supply chain, from mining to transportation to manufacturing.2) It established a company as a monopoly by incorporating all of the competition.3) It assigned one worker to a job, which helped reduce wasted time and accelerate manufacturing.4) It provided quick and easy access to transportation methods, such as canals, rivers, and railways.

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adeambrossi adeambrossi · Answer 1 · 2019-09-24T00:46:01+02:00

Answer:

2.

Explanation:

Horizontal integration is defined as a monopoly formed by controlling all of the same type of businesses.

Examples, Exxon Mobil.

Characteristics:

-Less control. Dependent upon others to play their part.

-Leverage. These companies are able to benefit from the success of everyone in the value chain.

-Collaboration. Requires frequent, open, trusting partner collaboration. Lack of trust kill this model.

-Flexibility over maximum efficiency.

-Attitude towards partners. Abundant mentality. The idea of helping your patners succeed. Having your entire value chain compete with other value chains.

This characteristics are the bases to develop a competitive strategy that can create economies of scale, increase market power over distributors and suppliers, increase product differentiation and help businesses expand their market or enter new markets.