How Did Andrew Carnegie's Use Of Vertical Integration

He had complete control; vertical integration, Vertical integration is control of the production process from raw material to manufacture and sale of finishes product .He owned Oliver Iron mining Co. that controlled almost all of the mesabi iron fields, owed six ore boats from Pittsburgh steamship company that transferred iron directly to the mills in pittsburgh, an entire port facility and machinery needed for transforming the ore onto trains. He owned everything he needed to manufacture steel for his company, Carnegie was said to be “a pioneer of this business

In this paper I will explain how the railroads changed American society, politics, and its economy during this era. Secondly, I’ll talk about the 1896 election and how that impacted America and changed American Politics and elections form that point on. Lastly, I will identify the 4 themes of the Gilded Age and explain the causes of these themes and the consequences it had on American politics, economy, and its society. When railroads were invented in America, and first started being used commercially and for businesses, it was a major technological leap. They created a huge demand for goods.

Jay Gould “standardized tracks” by buying multiple single railroads and connected them which formed the transcontinental railroad. The corrupted railroad king deliberately bankrupted businesses with water stocking then restore them into profitable businesses and bribed legislature officials to change laws to let him continue. J.P. Morgan was a broker for railroads and applied “Morganization” (which is the same as Jay Gould’s monopoly) to railroad and steel companies. J.P. Morgan also invested into Thomas Edison’s laboratory development of the incandescent lighting system.

The book “ANDREW CARNEGIE and the Rise of Big Business” written by Harold C. Libesay, explains Andrew Carnegies life with chronological events beginning how he and his family moved from Dumferline, Scotland in November of 1835. This books thesis is on how his skills and experienced he learned before starting Carnegie Steel intersect with each other and show how he dominated the steel industry. Carnegie’s industrial career is explained in depth how he acquired the knowledge on how businesses worked, as a manager capitalist then leading into a entrepreneur. The authors purpose I believe was to show not only Carnegies life leading to just Carnegie Steel, but also how determination and hard work can help you achieve success. This book on Andrew Carnegie explains well on in detail how Carnegie’s came to create his dominating steel industry empire.

Once he left, he dedicated most of his time to the steel industry, later resulting in his business called the Carnegie Steel Company which revolutionized steel production in the U.S. From this he started to build plants around the country, using technology and methods that made it faster and more efficient to manufacture steel. This made him a very wealthy man and he continued this for a few more years. Carnegie used a system of vertical integration to maintain his market dominance. Vertical integration is essentially the merging together of two businesses that are at different stages of production. This is when a company expands its business operations into different steps yet on the same production path; an example would be when a manufacturer owns its supplier and/or distributer.

Andrew Carnegie was a Scottish industrialist who led the expansion of the steel industry back in the 19th century and is known as one of the richest men. One reason that Andrew Carnegie

Just like the treatment his workers endured Carnegie wasn't any nicer to his competitors. Andrew Carnegie was a phenomenal businessman. Much of his success is due to how he operated his business. He watched the costs of his business intently (Document C), always making sure that the steel was being produced at a lower price than what it was being sold for (Document D), and he watched his competitors even closer. In March 1889, when Allegheny Bessemer Steel built a mill directly across from Carnegie's mill it intimidated Carnegie.

Carnegie used vertical integration to maximize his profits and cut costs (Deverell and White 622). Henry Ford utilized the assembly line to make his cars more affordable (Deverell and White 755). But one man stood out. Out of many powerful businessmen, J.P. Morgan was the most influential person during the Second Industrial Revolution. J.P. Morgan major player many industries over the course of his career.

1) Andrew Carnegie used vertical integration, controlling every step in the process of manufacturing a product, dominating the market. Vertical integration is when the company owns all means of distribution from beginning to end, this makes supplies more reliable and improved efficiency. It controlled the quality of the product at all stages of production. Horizontal integration was used by John D. Rockefeller and is an act of joining or consolidating with one’s competitors to create a monopoly. In Ohio in 1870 he organized the Standard Oil Company.

Two amazing men who had great hopes of living the American Dream, Andrew Carnegie and John D. Rockefeller. They both started from the bottom of the ladder, poor family, impoverished, and eventually climbed to the point where they became known as many of the men who created America. Their accomplishment started out when they were approached and challenged with difficult situations, but as clever entrepreneur. They were able to overcome the roadblocks, by taking enormous risks and strategic planning. These actions were very successful that it allowed their company’s budget to snowball to the point where they became one of the most wealthiest men on earth.

There were many technological innovations during the Gilded Age and most came from great minds of men like Carnegie, Vanderbilt, and Rockefeller. These innovations, such as the railroads, steel, and electricity, helped pave the way towards the strong and powerful America we know today. Railroads today are hardly ever used anymore except to ship huge loads of materials from one end of the country to the other, but even then, there are other efficient means for the travel of such products such as by plane, but back then in the Gilded Age, railroads were a huge part of the political and high class society of America. To control an important railroad was to have power in the society of America back then, and your power and class position would go up even higher with many such railroads under your belt. Such was the case for Vanderbilt, who had crucial railroads under his control and authority.

Andrew Carnegie Andrew Carnegie’s was one of the most successful businessmen during America’s Age of Industrialization in the 1880’s. After the Civil War, he saw a future in having a career in the iron industry, and later on, decided to invest in the steel industry (PBS). Though Carnegie is most known for his contribution in the steel industry, he took part in a few other businesses as well. However, the Gilded Age is an era full of poverty and corruption hidden underneath the prosperous, wealthy nation, and the working conditions within Carnegie Steel Company were not much better than those in other factories (Resetar).

He looked into steel as at the time it was the strongest material ever made but he came across a problem, as it was very expensive and difficult to produce, and it was also only used for small items around that time like cutlery and jewelry. Carnegie had a vision for the future and his vision was mass produced steel. (Source 8) He invested in a new invention that had the ability to produce large steel structures, like the beams needed to build the bridge. (Source 3) The Eads Bridge was behind schedule and Carnegie was not able to pay back investors.

Working as a personal telegrapher he came up with two ideas to help make the railroads more efficient and these two ideas were the most successful ideas. In 1859, he was promoted to Pennsylvania railroad superintendent. In 1861, Carnegie started the freedom iron company. Since the railroads were getting destroyed in war and deteriorating over time the iron business allowed him to bring in a lot of money since he was the biggest iron maker. In 1865, Andrew changed paths and sold the freedom iron company to make the keystone bridge company, this was revolutionary because this is when bridges started being built with iron instead of wood.

The Tremendous Impact of Railroads on America In the late 19th century, railroads propelled America into an era of unprecedented growth, prosperity, and convenient transportation. Prior to the building of the railroads, America lacked the proper and rapid transportation to make traveling across the country economical or practical. Lengthy travel was often cumbersome, costly, and dangerous.