Rockefeller and Oil (1863) Scott and Il-jee

Who is John D. Rockefeller? Founder of Standard Oil Company Vertical and Horizontal integration method Drove his rivals out of business By 1880 controlled 90% of country’s petroleum- refining capacity.

Vertical Integration A method to acquire companies that provide them with materials at cheaper price. Acquiring other companies barrel factories, oil fields, oil storage facillities, pipe lines, railroad tanker cars Abled Rockefeller to sell his oil for cheaper price than his competitors

Horizontal Integration “one company’s control over another company producing same product” Taking over same types of companies Rockefeller’s method Brought Standard Oil Company as nation’s first trust trust: a large company that has or attempts to gain monopolistic control of a market

Why Monopolize? Because Rockefeller believed competition was inefficient, he decides to gain control of the oil industry