Horizontal Growth. A firm can achieve horizontal growth by expanding its operations into
other geographic locations and/or by increasing the range of products and services offered to
current markets. Research indicates that firms that grow horizontally by broadening their
product lines have high survival rates. Horizontal growth results in horizontal
integration—the degree to which a firm operates in multiple geographic locations at the same
point on an industry’s value chain. For example, Procter & Gamble (P&G) continually adds
additional sizes and multiple variations to its existing product lines to reduce possible niches
competitors may enter. In addition, it introduces successful products from one part of the world
to other regions. P&G has been introducing into China a steady stream of popular American
brands, such as Head & Shoulders, Crest, Olay, Tide, Pampers, and Whisper. By 2007, it had
6,300 employees in China and the extensive distribution network it needed to prosper in the
world’s fastest growing market.