USA HISTORY

Detailed explanation-1: -Vertical Integration was first used in business practice when Andrew Carnegie used this practice to dominate the steel market with his company Carnegie Steel. It allowed him to cut prices and exhuberate his dominance in the market.

Detailed explanation-2: -Vertical Integration was a process in which Andrew Carnegie bought out his suppliers such as, coal fields, , iron mines, ore freighters and railroad lines. b. How did it help businesses such as the Carnegie Company and tycoons like Andrew Carnegie? He did this to control the raw materials and transportation systems.

Detailed explanation-3: -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-4: -Traditional monopolies are achieved through horizontal integration, when one firm merges with its direct competitor, creating a larger firm that controls a greater portion of the market. Vertical integration describes a circumstance when a single firm seeks to control more than one stage in the supply chain.