Horizontal IntegrationThis exercise reviews the concept of horizontal integration and the advantages and disadvantages thereof. Horizontal integration has four sources of valuecreation: reduction in competitive intensity, lower costs, increased differentiation, and access to new markets and distribution channels. The text providesseveral examples to illustrate these different sources of value creation (or benefits or advantages). We have selected four well-known mergers oracquisitions that led to horizontal integration from the discussion in the chapter.You should be familiar with the text material from section 9.3 on mergers and acquisitions before completing this exercise and also review LearningObjective 9-5 on differentiating between mergers, acquisitions, and explain why firms would use either to exercise corporate strategy. In addition, reviewLearning Objective 9-6 on defining horizontal integration and evaluating the advantages and disadvantages of this option to execute corporate-levelstrategy.