Which term describes the purchase of competing companies in the same industry?

The purchase of competing companies in the same industry is accurately described by the term horizontal integration. This strategy involves acquiring businesses that operate at the same level of production or within the same market segment, which can help to increase market share, reduce competition, and create economies of scale.

Horizontal integration has historically been used by companies seeking to strengthen their position in the marketplace by consolidating their resources and capabilities. By merging or acquiring competing firms, a company can streamline operations and capitalize on synergies that arise from combining operations.

Other terms in the answer choices refer to different strategies or concepts. For example, vertical integration involves the acquisition of companies at different stages of production or supply chain, which is not the case here. Market consolidation generally refers to the overall process of fewer companies controlling a larger share of the market but does not specifically address the acquisition of competitors. A corporate merger, while similar, can refer to various forms of business consolidations and is not limited to just acquiring competitors within the same industry.