In horizontal integration, what do the involved businesses typically have in common?

In horizontal integration, the businesses involved typically belong to the same sector of industry. This means that they operate in the same market and produce similar products or services. The primary aim of horizontal integration is often to increase market share, reduce competition, and achieve economies of scale. By merging or acquiring other companies within the same industry, a business can enhance its resources, capabilities, and overall competitiveness.

This strategy allows businesses to leverage shared technologies, distribution channels, and customer bases, ultimately leading to stronger operational efficiencies. Additionally, functioning within the same sector helps ensure that these businesses face similar market conditions and regulatory environments, which can facilitate a smoother integration process.