Final answer:
Vertical integration involves acquiring companies in different phases of a product's lifecycle, while horizontal integration occurs when firms producing the same kind of product join together.
Step-by-step explanation:
Vertical integration and horizontal integration are two types of mergers in business.
Vertical integration
is a method where a company acquires other companies that include all aspects of a product's lifecycle, from the creation of raw materials to the delivery of the final product. A famous example of vertical integration is Henry Ford's Ford Motor Company, which owned the entire production process from manufacturing the car parts to assembling the final vehicles.
Horizontal integration occurs when two or more firms that produce the same kind of product join together. This type of merger can lead to growth, increased efficiency, acquiring new product lines, eliminating rivals, or losing corporate identity. John D. Rockefeller's Standard Oil Company is associated with horizontal integration, as it acquired many oil refineries to dominate the oil industry.