Toy Truck

This toy truck, that was created by Matchbox but sports a McDonald's logo and mascot on its side, is an example of horizontal integration, also known as external synergy. Horizontal integration is when two companies work together to create one product that benefits both. In this case, McDonald's is licensing its logo to Matchbox. The purpose of this product is not only to make profit; it also doubles as a means of advertising directly to the targeted demographic, which in this case is young boys around the ages of 7-10. The ingenuity of this product is that it brings advertising directly into the home of the demographic it targets. Its purpose, of course, is to create brand loyalty at an early age, by linking happy childhood memories to a brand. In this case, McDonald's is hoping that while playing with the truck, the child then wants to go to McDonalds and pursuades his/her parents.
On the other hand, there is vertical integration, or internal synergy; this is when one corporation creates a product. An example of this is Howard Stern, who works for Viacom, through MTV. While the toy truck was created by two seperate companies, Howard Stern and every product involving him is, inevitably, part of Viacom. For example, Howard Stern's autobiography was made into a movie by Universal Studio's, which is owned by Viacom. Therefore, the profit 'stays in the family'. The profit of the sales of the toy truck is shared, in theory, and McDonald's is also profiting from the advertising on the truck.
All in all, the driving force behind a product is still always the lure of profit, even if it was created by one company or several.