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Horizontal integration refers to the strategy where a company acquires or merges with other firms that operate at the same level within the same industry. This can include the purchasing of competitors or companies that offer similar products or services. By doing so, a company can increase its market share, enhance economies of scale, and reduce competition, leading to larger market control and potentially increased profitability.

When businesses engage in horizontal integration, they aim to consolidate their resources, streamline operations, and leverage synergies, which can improve efficiency and lower costs. This type of integration contrasts with vertical integration, where a company might acquire firms at different levels of the supply chain, such as suppliers or distributors.

In summary, horizontal integration is about expanding a company's influence and capabilities by acquiring firms in the same industry, which ultimately helps in strengthening their market position.