Which integration strategy is focused on businesses operating in the same sector?

The focus of horizontal integration lies in companies within the same sector or industry coming together. This strategy aims to enhance market share, reduce competition, and obtain economies of scale. By merging or acquiring businesses that operate at the same level of the supply chain, a company can consolidate its position in the market, streamline operations, and ultimately improve profitability.

For example, if two competing firms in the software industry decide to merge, they can pool their resources, share technology, and expand their customer base more effectively than if they continued to operate separately. Horizontal integration is often pursued for growth and competitive advantage, making it a powerful strategy for businesses aiming to strengthen their presence in their respective sectors.

While mergers can encompass various forms of integration, including both horizontal and vertical, the specific focus on companies operating in the same sector qualifies horizontal integration as the correct answer in this context.