Horizontal integration is a business strategy where a company acquires or merges with other companies at the same level of the supply chain. This approach allows firms to increase their market share, reduce competition, and achieve economies of scale. For example, if a soft drink company buys another soft drink brand, it can streamline operations and expand its customer base. This strategy can also lead to greater bargaining power with suppliers and distributors. By consolidating resources and capabilities, companies can enhance their product offerings and improve profitability. However, horizontal integration can raise regulatory concerns, as it may lead to monopolistic practices in certain markets.