By adopting the horizontal integration strategy, enterprises can effectively achieve economies of scale and quickly obtain complementary resources and capabilities. In addition, through acquisition or cooperation, enterprises can effectively establish a fixed relationship with customers, curb the expansion intention of competitors, and maintain their competitive position and competitive advantage.

However, there are some risks in the horizontal integration strategy. For example, the huge production capacity caused by excessive expansion puts forward higher requirements for the scale of market demand and the sales ability of enterprises; At the same time, in some horizontal integration strategies, such as cooperation strategy, there is still the risk of technology diffusion; In addition, organizational obstacles are also one of the risks faced by horizontal integration strategy, such as "big enterprise disease" and cultural incompatibility in mergers and acquisitions.

Horizontal integration strategic model

Through the horizontal integration strategy, we can effectively expand the scale, realize economies of scale and reduce competitors, so as to improve the competitive position of enterprises in the market and realize the rapid development of enterprises.