Determine fundamentals drawbacks of horizontal integration


Assignment:

"Corporate-level Strategies"

Please respond to the following with detailed comments and analysis (Note: please watch the video):

Video Source: PBS NewsHour (2010, September 27). Southwest Eyes Market Growth With AirTran Merger [Video file]. Retrieved from

https://www.youtube.com/watch?v=D0d6y1xRqGU

THEPOWER OF A MERGER: SOUTHWEST:

https://www.cengage.com/management/book_content/9781111825874_hitt/videos/southwest_merger.html

1. From the video, analyze the essential manner in which the new Southwest-AirTran merger and resulting low-cost structure strategy could maximize both companies' long-term profitability. Support your response with at least two examples that illustrate the manner in which each company would avoid risks associated with becoming too dependent upon its corporate partner.

2. From the video, determine the fundamentals drawbacks associated with horizontal integration.

3. Suggest another corporate-level strategy that could redefine the Southwest business model and thus allow the company to increase its competitive advantage within a changing industry environment. Provide a rationale to support your response.

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Microeconomics: Determine fundamentals drawbacks of horizontal integration
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