A horizontal marketing system is a channel organization in which two or more companies at the same level of the channel (e.g., two retailers or two manufacturers) join forces to exploit a new marketing opportunity. They cooperate to achieve a common goal.
This type of system occurs when the individual companies do not have sufficient resources, capital, production capacity, or marketing expertise to act alone. An example would be a joint venture or strategic alliance between competitors to enter a new market or co-brand a product.
