Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

Practice this question and more.

What does horizontal integration aim to achieve?

Increasing market share
Reducing competition
Expanding product lines
Opening new markets

The correct answer is: Increasing market share

Horizontal integration primarily aims to increase market share by acquiring or merging with other companies at the same level of the supply chain. This strategy allows a business to expand its influence in a specific market, effectively aggregating a larger customer base and potentially gaining a competitive edge through economies of scale. By increasing market share, companies can also enhance their bargaining power with suppliers and improve their overall brand presence in the industry. While reducing competition, expanding product lines, and opening new markets are valuable business strategies, they complement or are sometimes a result of horizontal integration rather than its primary goal. Thus, increasing market share stands out as the core objective of horizontal integration strategies in business.