Benefits of horizontal integration

• Businesses can share knowledge and expertise: e.g. two businesses may have strengths in different areas, when these businesses are combined, these shared expertise can result in greater quality products and greater customer satisfaction- could lead to increased revenue
• Reduces competitive rivalry- by acquiring a competitor, this will reduce the choice of customers, could give them the ability to charge higher prices + business will gain acquired firms customer base- leads to increased sales revenue + profitability
• Less likelihood of failure when entering new markets: reduce the competitive rivalry in the market- means they are more likely to succeed
• Fast access to resources such as land, premises and equipment: means a business can build a presence in this market much faster than they would have been able to if they had grown organically- can increase profits and dividends