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Yes, the acquisition of a competing brand by a smartphone manufacturer is a clear example of horizontal integration. Horizontal integration occurs when a company acquires, merges with, or takes over another company operating at the same stage of the production or distribution process within the same industry. In this scenario, both the acquiring smartphone manufacturer and the target brand are operating in the same industry, producing similar products, and serving largely overlapping markets. By acquiring a competitor, the manufacturer expands its market share, reduces competition, and strengthens its position in the smartphone industry. The primary objective of horizontal integration is to achieve economies of scale. When a company merges with or acquires a competitor, it can combine production facilities, distribution networks, and research and development efforts. This consolidation often leads to cost savings through reduced redundancies in operations, bulk purchasing of components, and streamlined marketing and distribution channels. For a smartphone manufacturer, this could mean negotiating better prices for semiconductors, batteries, and other essential components due to larger combined volumes, which directly reduces the per-unit cost of ____ ______ ___ _______ ____ _________ ____ _________ _______ _________.
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