Horizontal Expansion

Question

Explain the term Horizontal Expansion?

Answer 1

It is defined as the growth strategy. Of a firm tries to expand its business through the creation of other firms within their same line of business it is known as the horizontal expansion. The purpose of the horizontal expansion is to improve the market Shane. In order to decrease the cost of production through the large scale economic to take the benefit of the synergy and to encourage the products and the services more efficiently to the larger audience.