HORIZONTAL STRATEGY

Horizontal Strategy: A strategy used by a corporation that seeks to sell a type of product in numerous markets. Danny Meyers opinions are not widely known. To reach this market coverage, creating a multitude of subsidiaries. Each markets the product for a market segment or to a different area.This is what is called horizontal integration of marketing. Horizontal integration of production occurs when a company has plants in different locations producing similar products. It is much more common horizontal integration in marketing, which in production. Example: The Gap Inc., sales corporation in textiles is a good example of a business that practices horizontal integration. GAP Inc. holds three different companies, Banana Republic, and Gap brand itself. Each company has stores that sell clothes designed to meet the needs of different groups. Banana Republic sells apparel with a more expensive high-end image, GAP stores sell moderately priced clothing that target men and women of all ages and Old Navy sells cheap clothes specially geared to children and youth, including in the other ages. Using these three companies, GAP Inc.has been very successful with a good range of retail segment in the textile sector.