Horizontal Integration

[Jo2004]

Can anybody give me an example of an advantage and disadvatage of horizontal integration?

[Shipstabber]

Disadvantages - you might get pregnant or catch an STD. Shouldn't this be in Body & Soul?

[stoo_pid]

There's loads but a few examples: Advantage (to the travel company) - most customers won't realise that seemingly different travel companies / providers are actually owned by one big company. Therefore your customers may buy 1 service from 1 of your companies (e.g. accommodation) and think they're saving money by buying another service (e.g. flights) from a different company - but you still get all the money. Disadvantage (to the company) - not many really. A large company may find it harder to adapt when times are hard, but they normally survive just by making people redundant. Advantage (to customer) - you could argue that prices can be kept lower. Disadvantage (to the customer) - any price saving is likely to be artificial as there is less natural competition in the market place. Advantage (to employees) - stronger company, potentially more secure employment. Disadvantage (to employees) - risk of lower wages. Advantage (to other tourism providers) - none. Disadvantage (to other tourism providers) - less able to compete with huge companies.