Horizontal integration
Economic theory of ownership.Horizontal integration is a strategy used by a business or corporation that seeks to sell one type of product in numerous markets. To get this market coverage, several small subsidiary companies are created. Each markets the product to a different market segment or to a different geographical area.
The GAP retail clothing corporation is a good example of a business that practices horizontal integration. GAP Inc. controls three distinct companies, Banana Republic, Old Navy, and of course the GAP itself. Each company has stores that market clothes tailored to appeal the needs of a different group. Banana Republic sells more expensive clothes with a more "upscale" image, the GAP sells moderately priced clothes that appeal to middle-aged men and women, and Old Navy sells inexpensive clothes geared towards children and teenagers. By using these three different companies, GAP Inc. has been very successful at controlling a large segment of the retail clothing industry.
see also: target market, economies of scale, chain ownership, monopoly, vertical integration
| List of Marketing Topics | List of Management Topics |
| List of Economics Topics | List of Accounting Topics |
| List of Finance Topics | List of Economists |
