Horizontal integration can lower costs for the consumer in several ways.
Firstly, it can lead to economies of scale, where a larger company can produce goods or services more efficiently and at a lower cost than smaller competitors. This can result in lower prices for consumers because the larger company can spread its fixed costs, such as advertising and research and development, over a larger volume of sales.
Secondly, horizontal integration can reduce duplication of effort and increase efficiency by eliminating redundancies in operations and consolidating functions such as distribution and marketing. This can lead to cost savings that can be passed on to consumers.
Finally, horizontal integration can increase bargaining power with suppliers, as the larger company has more purchasing power and can negotiate better deals on raw materials and other inputs. This can lead to cost savings that can also be passed on to consumers.
Overall, horizontal integration can help to reduce costs for consumers by increasing efficiency, achieving economies of scale, and increasing bargaining power with suppliers. However, it is important to note that the benefits of horizontal integration may not always be passed on to consumers and may instead result in increased profits for the company.
~~~Harsha~~~