Horizontal integration is a corporate-level strategy that involves acquiring or merging with competitors to
achieve competitive advantages such as economies of scale. Horizontal integration can increase profitability
if the integration lowers the cost structure of the resulting company, increases product differentiation,
replicates a company’s successful business model in new market segments, reduces rivalry in an industry,
and/or increases the company’s bargaining power with suppliers and customers. In many cases, however, the
resulting company is not more profitable and may even be less profitable than the two separate companies
were. In any event, "diseconomies of scale" is not a benefit.