Final answer:
In-N-Out Burger's acquisition of a chicken fast food chain is an example of horizontal integration, where a company grows by buying others in the same industry.
Step-by-step explanation:
When In-N-Out Burger acquires an independently owned chicken fast food chain, this action represents a form of horizontal integration. Horizontal integration refers to a company expanding its operations by acquiring other companies in the same industry and at the same level of the value chain, thereby increasing its market share and reducing competition. This strategy differs from vertical integration, which involves a company extending its control over multiple stages of its production or distribution process.
Unlike diversification, which involves acquiring businesses in different industries, horizontal integration focuses on the same industry, and it's not a simple market penetration because the company is acquiring a new business rather than expanding the market share of its existing products.