Benetton's diversification was from designing & manufacturing fashion into retailing. This can be thought of as forward vertical integration as retail is nearer to the end user market than is manufacturing (its core business).
Some firms may choose to integrate backwards (towards the raw material). BSkyB did this when purchasing Amstrad (a manufacturer of satellite set top boxes)
Forwards - towards consumer. Backwards - towards the raw material.All are vertical integration.
A firm which acquires a provider of complementary services is undertaking horizontal integration. BSkyB/Amstrad does not fit into this category because STBs are a necessity to receive Sky's service and part of the supply chain (Sky supplied the boxes even before they bought Amstrad). But Sky buying a TV manufacturer would be horizontal integration.
Similarly, an electricity supplier diversifying into gas would be horizontally integrating. But if they were to buy the generating company they would be vertically integrating.
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