Why did Andrew Carnegie want to achieve both horizontal and vertical integration?

http://en.wikipedia.org/wiki/Vertical_integration

Andrew Carnegie wanted to achieve both horizontal and vertical integration because it allowed him to have more control over the steel industry and maximize his profits. Horizontal integration involves the acquisition of competing firms in the same industry to consolidate market share and reduce competition. Vertical integration, on the other hand, involves owning and controlling every step in the production process, from the raw materials to the finished product.

By pursuing horizontal integration, Carnegie was able to eliminate competition and increase his market power. This allowed him to control prices and minimize the risk of other steel producers undercutting his prices or offering lower-quality products. By acquiring different steel companies, he could also benefit from economies of scale, such as bulk buying of raw materials and shared distribution networks.

Vertical integration, on the other hand, allowed Carnegie to maintain control over every stage of the steel production process. By owning the mines that supplied the raw materials, the transportation infrastructure, and the manufacturing facilities, he could reduce costs and increase efficiency. It also gave him more control over quality and pricing, as he could eliminate dependence on external suppliers or customers.

In summary, Andrew Carnegie pursued both horizontal and vertical integration to consolidate his power in the steel industry, reduce competition, increase efficiency, and maximize his control over production processes and profits.