How did John D. Rockefeller horizontally integrate his monopoly in 1882?
Answer (2)
Rockefeller used the size of his company Standard Oil to negotiate preferential rates with railroad companies to transfer his oil in the refinement process. By gaining the upper hand in transportation costs, he was able to horizontally integrate his competitors into his firm working to establish a monopoly in the American oil industry.
John D. Rockefeller horizontally integrated his monopoly by merging competing oil companies into Standard Oil and creating a trust to manage these entities in 1882. He used aggressive pricing strategies to drive competitors out of business while negotiating favorable shipping rates to reduce costs. By consolidating control over nearly the entire oil refining industry, he established a dominant market position.
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