Th3.1: Horizontal Integration Disadvantages Flashcards
1
Q
What is horizontal integration?
A
where firms in the same industry at the same stage of production integrate
2
Q
What is the one disadvantage of horizontal integration?
A
it will increase risk for the business as if that particular market fails they have nothing to fall back on and will have invested a lot of money into that area - eggs all in one basket vibes
