Horizontal Marketing Systems

Another  channel  development  is  the  horizontal  marketing  system,  in  which  two  or  more companies at one level link together to follow a fresh marketing opportunity. By working together, companies may combine their production, capital capabilities, or marketing resources to complete more than any one company could alone. Companies may join forces with competitors or non- competitors. They may work with each other on or permanent or temporary basis or they can create a separate company. Such channel arrangements also work fine globally.