Answer:
2.
Explanation:
Horizontal integration is defined as a monopoly formed by controlling all of the same type of businesses.
Examples, Exxon Mobil.
Characteristics:
-Less control. Dependent upon others to play their part.
-Leverage. These companies are able to benefit from the success of everyone in the value chain.
-Collaboration. Requires frequent, open, trusting partner collaboration. Lack of trust kill this model.
-Flexibility over maximum efficiency.
-Attitude towards partners. Abundant mentality. The idea of helping your patners succeed. Having your entire value chain compete with other value chains.
This characteristics are the bases to develop a competitive strategy that can create economies of scale, increase market power over distributors and suppliers, increase product differentiation and help businesses expand their market or enter new markets.