USA HISTORY

Detailed explanation-1: -In addition, Carnegie Steel bought up its sources of raw materials and shipping (in a strategy called vertical integration) and bought out and absorbed its competitors (horizontal integration) to dominate the steel industry. By the 1890s, it was the largest and most profitable steel company in the world.

Detailed explanation-2: -Vertical integration helped the Carnegie steel business by purchasing all the components that went into making steel: buying the mines that produced the raw materials, the railroads that shipped them, the electricity providers for the factories, etc.

Detailed explanation-3: -Vertical integration is a corporate strategy that involves growth through streamlining operations. This occurs when one company acquires a producer, vendor, supplier, distributor, or other related company within the same industry.

Detailed explanation-4: -What did Andrew Carnegie’s vertical integration business model accomplish? Vertical integration put all aspects of the steel industry under his control.