Depending on whether you extend the product chain vertically or horizontally, you could be talking about either integration effects (expansion of depth) or bundling effects (expansion in the width).
When you vertically integrate your company, you increase your depth of service. This is the case, for example, when you manufacture the materials you need to make the product yourself or when you take over distribution channels. By taking over more and more stations in the value chain yourself, you usually achieve cost savings. In addition, you may also be able to make the additional production or distribution stations that you have established available to other companies in return for a fee. This way you can generate additional revenue.
With the bundling effect you broaden your offering range at the level of the value chain. So, you make a new product in addition to an existing one. Ideally, you should try to use as many of the existing resources as possible to make the new product: skilled workers, machinery, and storage facilities should at least be partially made available for the production or distribution of the item. As a result, you can usually save more money than producing a completely different product that requires different machinery and knowledge to that of your previous production. At the same time, the expansion of products or services usually increases the turnover of the company.
Within these two types of effects, you can again differentiate three types of the connection: They are of a functional, spatial or temporal nature.