Horizontal Integration Definition
Horizontal integration is the act of integrating other infrastructures, assets and companies of the same industry or in the same level of production. The acquisition of these assets typically results in an expansion of existing operations rather than the establishment of new operations. An example of horizontal integration would be one fast food chain buying another or one oil company purchasing refineries from another oil company.
Vertical Integration Definition
Vertical integration is the act of expanding into new operations for the purpose of decreasing a firm's reliability on other firms in the process of production and distribution. Such integration requires firms to undertake new aspects of business operations. An example would be a supermarket firm that, instead of contracting with freight companies, purchases its own trucks and distribution facilities that it uses to get food items and household products out to its various locations.