D4: This course

Growth is an essential stage in any business. Growth entails the expansion of services as well as market covered by the products of the company. Organizations and institutions have learnt to employ corporate strategies that help them to undergo extensive growth in all aspects of operation within the company. There are various strategies of growth that companies have employed to ensure that they gain competitive advantage in the market while boosting the efficiency and productivity of the company. Horizontal diversification is one method of growth that entails the acquisition of companies dealing with different products but with the same core values. Conglomerate integration is another strategy that entails acquiring businesses in unrelated industries to reduce fluctuations in cash flows and revenue. Vertical integration is another strategy whereby the company merges stages of production .such as distribution (Raue & Wieland, 2015). Another strategy is strategic alliances whereby companies form partnerships to reduce the competition in the market. Another main strategy that has been employed by a majority of companies is horizontal integration. Porsche has employed horizontal integration to facilitate its growth and help it remain relevant in the market. In this paper, horizontal integration as a corporate strategy employed for growth is discussed by analyzing how Kraft foods has employed the strategies to achieve growth.

Horizontal integration is the process through which companies acquire other companies in the same industry dealing with the same products to help reduce competition within the market setting. The company that is taking control of another company is known as the acquiring company. The acquired company in this case is able to grow in the industry without having to switch its production activities or other logistics (Raue & Wieland, 2015). Acquiring of another company can be done in wot main ways. One method is forming a merger whereby the two companies agree to become one or acquisition where one company buys the assets of another to the extent that it owns the other company. Horizontal integration is one of the strategies that has proved to be effective in providing cover and growth to the organization.

Kraft Foods is one of the big companies that has engaged in activities that entail horizontal integration. Kraft foods took over Cadbury as a company. Kraft foods and Cadbury were significant competitors in the market. Cadbury started as a company selling cocoa and tea in Birmingham about two centuries ago but later ventured into the production of beverages (Smith, 2009). Kraft foods on the other hand started one century ago as a cheese company but later ventured in production of confectionaries. All companies significantly engaged in activities involving productions within the food industry. Cadbury and Kraft are multinational companies involved in production of snacks and confectionaries. With the merger, the companies enjoy significant market without competition since Kraft Foods is the main producer of these confectionaries in the international market.

Horizontal integration is effective in facilitating growth within a company. It helps reduce the levels of competition while helping the company to access larger varieties of markets. The strategy has significantly helped Kraft foods to further develop its international markets becoming one of the largest companies in the production of confectionaries.

References Raue, J., & Wieland, A. (2015). The interplay of different types of governance in horizontal cooperations: a view on logistics service providers. The International Journal of Logistics Management(26). Smith, A. (2009). Eating History: Thirty Turning Points in the Making of American Cuisine. New York: Columbia University Press.