How Does Horizontal Integration Affect Stakeholders?
Horizontal integration impacts various stakeholders in different ways:
Employees: There may be job losses due to redundancies and operational consolidation. Consumers: While consumers might benefit from a broader product range, reduced competition could lead to higher prices. Shareholders: Shareholders may experience short-term gains from increased market power but face long-term risks if the integration fails. Suppliers: Suppliers might face increased pressure on pricing negotiations due to the reduced number of buyers.