Business Growth Post Civil War
Oil Business Is Booming!
How did he become so good with oil?
In 1870 Rockefeller organized the Standard Oil Company of Ohio and set out to dominate the oil industry. He acquired most of the oil refineries in Cleveland and other cities.
What did he use to store and get so much oil?
One method Rockefeller used to build his empire was Horizontal Integration- combining competing firms into one corporation. The corporation produced and used its own tank cars, pipelines, and even its own wooden barrels- made from the forests owned by Standard Oil Company. Standard Oil grew in wealth and power, becoming the most famous corporate empire of the day.
How did He make his company so popular and how did he earn his buyers trust?
To strengthen Standard Oil's position in the oil industry, Rockefeller lowered his prices to drive his competitors out of business. In addition he pressured customers not to deal with rival oil companies, and he persuaded the railroads to grant him rebates in exchange for his business.
How did the Government restrict Standard Oil Company
The Standard Oil Company was restricted by the government because the monopoly power was abused by Standard Oil.