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Commonly referred to as "synergies."
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Increased market power (over suppliers and downstream channel members)
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Reduction in the cost of international trade by operating factories in foreign markets.
Sometimes benefits can be gained through customer perceptions of linkages between products. For example, in some cases synergy can be achieved by using the same brand name to promote multiple products. However, such extensions can have drawbacks, as pointed out by Al Ries and Jack Trout in their marketing classic, Positioning.
Pitfalls of Horizontal Integration
Horizontal integration by acquisition of a competitor will increase a firm's market share...
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