Although Apple is a big name
in the technological industry, but the company do not have its own
manufacturing facilities, as it produces everything in China because of the low
manufacturing cost. This means that this technological giant has not expanded
much vertically in its production line; however they outsource this task and
ask other companies to produce components for them. Apple is continuously
expanding its product line; however its production line is still constant but
the company does operates and own all of its shops. The company has integrated
horizontally by expanding on the services that they provide.
For a company like Apple
expanding horizontally can be much easier than expanding vertically. Horizontal
integration indicates the strategy of a business to increase a market share by
occupying a similar company or business. The services that are offered by Apple
include Apple online stores, Apple stores, iOS App store, iTunes Store, iCloud
and iBooks. Another example of integrating horizontally can be the software
that is being used by Apple, which is different from its competitors. The
software that is offered by Apple is considered to be the key product offered
by the firm, as without it all the products being offered by the company would
be generic. The software link is considered to be horizontal, as it is
considered to be something that is united as well as differentiates the
products offered by Apple from its competitors by creating an exclusive brand
image.