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

Standard Of Monopolized The cover Industry - Essay ExampleBuying Competitors Though most of Standard anoints takeovers aimed at gaining competitive advantage, they also benefitted the acquired company too. Rockefeller and his partners gained confidence from the competitors through wide-ranging volunteer association. Standard Oil also offered the former executives, of the acquired companies, high positions in the new company and was assured parity in management and was assimilated into the management because they were experienced and were well acquainted with the oil industry and local markets (Montague 76-81). The Standard Oil trust comprised of different companies in the industry which attained competitive advantage and maintained 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 idea of cooperation against competition (Montague 52). In his mind, huge industrial am algamations referred to as monopolies would substitute competition and individualism in the oil industry. Rockefeller used hardball manoeuvre to buy out the competitors. In 1874, the company started purchasing new oil pipeline networks. This assisted the company to amputate the flow of oil to the other companies that Rockefeller treasured to acquire. When a competing company made efforts to build a rival pipeline across Pennsylvania, Standard Oil purchased the land along the way 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 exile Rates In order to attain a competitive advantage over its competitors, Standard Oil surreptitiously organized for reduced shipping pass judgment from railroads. This aimed at reducing the average costs incurred by the company. Rockefeller had a fascination for efficiency tha t was unparalleled.