How did Andrew Carnegie gain control of the steel industry?
a. by giving away his money
b. by becoming a partner of Edwin Drake
c. by buying all the other steel mills
D. by practicing vertical consolidation
D
http://www.google.com/search?q=andrew+carnegie+gain+control+steel+industry&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7GGIE_en
so my answer is correct?
that post was from Bella not Anonymous
As I see it, both C and D are correct.
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first i thought it was C. but then my book said that it was illegal to buy all the other productions...and i found D in my book i just wanted to double check
He bought other steel mills -- but not "all" of them. That makes D correct.
Andrew Carnegie gained control of the steel industry primarily through the practice of vertical consolidation. Vertical consolidation refers to a business strategy in which a company acquires and controls all aspects of the production process, from the raw materials to the final products.
To gain control of the steel industry, Andrew Carnegie followed a step-by-step approach:
1. Initial Investment: Carnegie made his initial investment in the steel industry by purchasing shares in various companies, including the Keystone Bridge Company and the Union Iron Mills.
2. Acquiring Other Manufacturing Facilities: Carnegie then began acquiring other steel mills and manufacturing facilities, gradually consolidating his control over the industry. He focused on obtaining plants that were strategically located and technologically advanced.
3. Vertical Integration: After gaining control over multiple facilities, Carnegie implemented vertical integration. He sought to control each stage of the steel production process to ensure efficiency and cost-effectiveness. This involved acquiring coal mines, iron ore fields, and transportation infrastructure, such as railroads and steamships.
4. Cost Reduction and Efficiency: Through vertical integration, Carnegie was able to reduce costs and increase efficiency by eliminating middlemen and relying on his own resources.
5. Expanding Market Share: With greater control over production and reduced costs, Carnegie could offer steel at lower prices than his competitors. This allowed him to expand his market share and drive competitors out of business.
By practicing vertical consolidation, Andrew Carnegie gained significant control over the steel industry and established the Carnegie Steel Company, which eventually became one of the largest and most successful steel companies in the world.