1. Rockefeller and Oil (1863)
Scott and Il-jee

2. 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.

3. 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

4. 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

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