The given statement "Firms are far more likely to create shareholder value after completing a horizontal integration strategy" is True.
What is horizontal integration?
- When a company expands by acquiring adjacent businesses, specifically its rivals, this process is known as horizontal integration.
- They accomplish this by acquiring a business that works on the same level of the value chain. This indicates that both businesses serve the same clientele and provide comparable, if not identical, goods and services.
- Companies utilize the competitive strategies of horizontal and vertical integration to strengthen their positions and differentiate themselves from rivals.
- Both entail the purchase of other companies as a means of achieving company expansion. These two approaches have significant distinctions, although both can aid in business expansion.
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