Vertical Integration

  

1. Use the Internet or Strayer Library to research two to three (2-3)  articles on Standard Oil Co. Inc. and the related vertical integration.  Analyze the rationale for the so called “Trust-busting” Standard Oil  apart. Examine the main advantages and disadvantages of “Trust-busting”.  Support your response.
Use the Internet or Strayer Library to research two to three (2-3)  articles on organizations which experienced vertical integration. Select  at least two (2) vertical integration examples in addition to the one  on standard oil that we discussed on Part 1 of this discussion. Next,  assess the value that the vertical integration might have created or  will create for the organizations you selected. Support your response. 

2. Please respond to this post. (KJ)
 

Use  the Internet or Strayer Library to research two to three (2-3) articles  on Standard Oil Co. Inc. and the related vertical integration. Analyze  the rationale for the so called “Trust-busting” Standard Oil apart.  Examine the main advantages and disadvantages of “Trust-busting”.  Support your response. 

After  reading about the Standard Oil Co Inc.; I learned that the company was  founded by John D. Rockefeller, a renounced businessman, and a wealthy  man from the United State. The company was an Oil producing, refining  and supply company. It was the largest company of its kind at the time  and endured massive success in the oil business due to the dominance in  manufacture and supply of its product, in other terms called vertical  integration (Fernandes, et.al 2016).
Trust  busting is a strategy employed by the Government to break up  monopolistic system of marketing. This is otherwise known as trust  busting. Standard Oil Company destroyed most of its competing firms  through the integrations (Bogus, et.al 2016). They made it easier for  the standard oil to aggressively price its products so that other  suppliers couldn’t acquire them because of the practice of monopoly.  This raised awareness of the Government which led to total eradication  of monopoly practice. As a result of Government effort, the supreme  court ruled that the monopoly be broken up in the Standard Oil company  and like company such as American Tobacco. The main advantage of the  trust is that company get to grow at a faster rate within a short period  of time. It also encourage open market. It allowed for a short-term  growth. However, it has a limitation; and that’s a lack of competition,  trade protectionist, and inability of other companies to compete, and  that end up in monopoly again. 

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