Standard Of Monopolized The Oil Industry Essay Example | Topics and Well Written Essays - 1000 words

Standard Of Monopolized The Oil Industry - Essay ExampleBuying Competitors Though more or less of Standard Oils takeovers aimed at gaining competitive advantage, they also benefitted the acquired company too. Rockefeller and his partners gained confidence from the competitors through varied volunteer association. Standard Oil also offered the former executives, of the acquired companies, high positions in the new company and was sure parity in management and was assimilated into the management because they were experienced and were well acquainted with the crude industry and topical anaesthetic markets (Montague 76-81). The Standard Oil trust comprised of different companies in the industry which bring home the bacon competitive advantage and maintain an even competition among the members. Rockefeller perceived the buyouts of the other refineries in Cleveland as foreseeable. He is quoted noting the battle of the new brain of cooperation against competition (Montague 52). In hi s mind, huge industrial amalgamations referred to as monopolies would substitute competition and individualism in the oil industry. Rockefeller used hardball tactics to buy out the competitors. In 1874, the company started purchasing new oil note networks. This assisted the company to amputate the flow of oil to the other companies that Rockefeller wanted to acquire. When a competing company make efforts to build a rival pipeline across Pennsylvania, Standard Oil purchased the land along the dash to barricade the way. In the end, Standard Oil obtained control of all the pipelines within the nation. Notably, Standard Oil had attained full control of 90 percent of United States refining companies (Montague 176) Discounted Shipping Rates In hunting lodge to attain a competitive advantage over its competitors, Standard Oil surreptitiously organized for reduced shipping rates from railroads. This aimed at reducing the average costs incurred by the company. Rockefeller had a fascinatio n for energy that was unparalleled.