John D. Rockefeller
Founder of Standard Oil and the Rockefeller foundation
In 1863, John D. Rockefeller opened his oil refinery as a part of his company Standard Oil . Rockefeller would use both vertical and horizontal integration to grow his fortune to near $900 million at its highest point. He bought oil barrel factories, oil fields, railroad cars, and other necessary supplies to eliminate high costs for his business. In addition he bought out competitior's companies to increase profit margins greatly
In 1913, John Rockefeller started the Rockefeller Foundation, which for the past 100 years has promoted humanity not only in the United States, but throughout the world. Throughout its existence, the foundation has donated hundreds of millions of dollars to projects such as advancing health in foreign countries, transforming cities around the world, and increasing productivity to help improve economies.
As shown in the diagram above, Rockefeller used both vertical and horizontal integration to grow his industry. Vertical integration is when a company buys businesses involved in the manufacturing process of oil. Rockefeller bought oil barrel factories so that he wouldn't have to pay people to barrel his oil. He also bought railroad so he would not have to pay to transport his oil. Horizontal integration is when a company buys out smaller companies in a certain field, this reduces competition and increases profits. Rockefeller would buy out smaller oil refineries, and since Rockefeller owned most of the oil market, people had to buy their oil from him. This increased his profits and helped him grow his fortune, which allowed him to start the Rockefeller foundation.