USA HISTORY

Detailed explanation-1: -Rockefeller often bought other oil companies to eliminate competition. This is a process known as horizontal integration. Carnegie also created a vertical combination, an idea first implemented by Gustavus Swift.

Detailed explanation-2: -How did John D. Rockefeller vertically integrate his monopoly in 1882? He created a trust that controlled oil wells, refineries, and distribution networks. He created a trust that controlled ninety percent of the nation’s oil refineries.

Detailed explanation-3: -Standard Oil dominated the oil products market initially through horizontal integration in the refining sector, then, in later years vertical integration alongside the value chain, streamlining production and logistics, lowering costs, and undercutting competitors.

Detailed explanation-4: -With vertically integrated operations, an integrated oil and gas company is in direct contact with the energy end market and may gain certain market intelligence. This, in turn, helps it better manage oil and gas productions based on changing market demands.