Which tycoon led horizontal integration in the oil industry?

Which tycoon led horizontal integration in the oil industry?

• A. Henry Ford
• B. John D. Rockefeller
• C. Andrew Carnegie
• D. Cornelius Vanderbilt

Answer: (B)

Horizontal integration is when a company grows by taking over other firms in the same industry to control the market. John D. Rockefeller used this approach in oil by building Standard Oil and buying up many rival refineries, creating a dominant share of the market. This consolidation reduced competition, helped set prices, and allowed better control over supply and railroad terms, making Standard Oil the dominant oil company of its era. The other figures are known for different strategies: Henry Ford rebuilt the industry around mass production of cars, Andrew Carnegie expanded through vertical integration in steel, and Cornelius Vanderbilt grew the transportation network.

Horizontal integration is when a company grows by taking over other firms in the same industry to control the market. John D. Rockefeller used this approach in oil by building Standard Oil and buying up many rival refineries, creating a dominant share of the market. This consolidation reduced competition, helped set prices, and allowed better control over supply and railroad terms, making Standard Oil the dominant oil company of its era. The other figures are known for different strategies: Henry Ford rebuilt the industry around mass production of cars, Andrew Carnegie expanded through vertical integration in steel, and Cornelius Vanderbilt grew the transportation network.