Lateral expansion
From Wikipedia, the free encyclopedia
 |
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2009) |
 |
This article is an orphan, as few or no other articles link to it. Please introduce links to this page from related articles; suggestions may be available. (December 2009) |
Lateral expansion (sometimes known as horizontal expansion), in economics, is the growth of a business enterprise through the acquisition of similar companies, in the hope of achieving economies of scale or economies of scope. Unchecked lateral expansion can lead to powerful conglomerates or monopolies.
Related is vertical expansion, which is the growth of a business enterprise through the acquisition of companies that produce the intermediate goods needed by the business or help market and distribute its final goods. Any such value chain activities can be acquired through vertical expansion.
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
