All of the following are benefits of horizontal integration except:
A) Higher cost structure
B) Increased product differentiation
C) Replicated business model
D) Increased bargaining power over suppliers
E) All of these are benefits of horizonatal integration

Question

Quizplus · Accepted Answer

Higher cost structure is not a benefit of horizontal integration, but rather a potential drawback. Horizontal integration can lead to economies of scale, increased bargaining power, and the ability to offer a wider range of products or services. Replicated business models and increased bargaining power over suppliers are both potential benefits of horizontal integration, as is increased product differentiation if the combined company is able to bring complementary products or services together in innovative ways.

All of the Following Are Benefits of Horizontal Integration Except