The Industrial Tycoons
Making Monopolies
Andrew Carnegie, tycoon, monopoly, steel
Andrew Carnegie and John D. Rockefeller, two prominent figures in the Gilded Age, employed distinct strategies to dominate their respective industries.
Carnegie's Stock Market Strategy:
Carnegie began in the stock market at the age of 15 when he persuaded his mother to secure a loan against her boarding house for investing in steel companies.
Ownership Control: Realizing the significance of controlling a majority, Carnegie strategically acquired 51% ownership in multiple steel companies.
Formation of U.S. Steel Corporation: By merging these companies, Carnegie established the U.S. Steel Corporation, securing a monopoly on the steel industry.
Rockefeller's Monopoly through Price Wars:
Rockefeller began with considerable wealth, enabling him to initiate price wars in the oil industry.
Driving Competitors Out: Lowering oil prices significantly, Rockefeller forced other oil companies to the brink of closure.
Strategic Acquisitions: Rockefeller acquired these struggling businesses, consolidating his dominance in the oil industry and forming a monopoly.
Through what strategy did Carnegie create the U.S. Steel Corporation?
He bought low-quality steel and sold it at an extremely high price.
He used his family fortune to buy all the steel companies outright.
He merged the steel companies in which he had majority ownership.