Horizontal Marketing System HMS (or horizontal marketing system) is an arrangement of marketing whereby two or three companies in the same supply chain level collaborate towards a single goal. In this system, the companies work together to reduce costs, improve customer satisfaction and increase market shares. Horizontal Marketing Systems: Five things you should be aware of HMS differ from vertical marketing systems. Vertical marketing systems are a system where companies from different levels in the chain of supply work together towards a common objective. A retailer and a producer, for instance, could work together to make sure the retailer is able to keep enough stock on hand to meet customer demands. If you’re looking to learn more about advantages of horizontal marketing system, view the previously mentioned website.

HMS, however, is the collaboration of companies from the same level within the supply chains to achieve a single goal. HMS also comes in many forms. A joint venture is one of the most common types of HMS. In a partnership, two or even more companies work together to create a brand new company for the marketing of their products or service. Strategic alliances are another form of HMS. In a strategic partnership, two or more firms agree to collaborate on a specific project or marketing campaign. Finally, companies can also form HMS through informal agreements or partnerships. HMS is a very useful tool for businesses. Through collaboration, companies can pool resources and expertise to reduce costs and increase efficiency. HMS allows companies to expand into new markets and enter new product lines. The companies that work together will also have greater bargaining powers and negotiating leverage.

HMS has some drawbacks. There may be problems with communication and coordination between the companies. There may also be disagreements over how to share profits or make decisions. There may also be concerns over sharing confidential information with other companies. Lastly, HMS can be successful if managed properly. For an HMS to be successful, the company should have clear goals and expectations from the start. It is important that they understand their roles and responsibilities. To be successful, an HMS must have effective communication and coordination. Basically, a Horizontal Marketing System can be a beneficial way for companies at the same level in the supply chain to collaborate and achieve common goals. HMS does have potential downsides. However, they can easily be mitigated with good management and effective communication. HMS is likely to become more significant in the marketing landscape as business continues its evolution. By understanding HMS’s benefits and limitations, companies can better position themselves in an ever-changing marketplace.