John D. Rockefeller (and Andrew Carnegie) were two of America’s most notable entrepreneurs during the Industrialization age. Each of their methods of maintaining their organizations at the top and winning was unique. Their ability to manage all aspects of their business and to run it with extraordinary authority was what allowed them to make a significant impact on Industrialization in the latter half of the 20th century. This article will discuss the historical significance and similarities between Carnegie and Rockefeller businesses.
There are many commonalities between Carnegie, Rockefeller. Both of them were raised in modest homes and eventually became wealthy businessmen. Carnegie and Rockefeller had major businesses that controlled their individual industries and destroyed any competition. They were extremely controlling in their business and believed that only the strong survive. Both wanted to control competition to make their businesses more successful and wealthy. Both were wealthy and generous and made a lasting impact on American society. They would be among the wealthiest men alive today, if they were still around. The Standard Oil Company was and still is one of the most successful and well-known industrial revolution companies. Both companies were able to eliminate all competition and control almost all of the US production of their products. Rockefeller, Carnegie and the Carnegie Steel Company founders, were able to establish business practices that were completely different from each others. Carnegie used the “vertical integrated” method to control iron production. Vertical integration was the process by which a company took over ownership of an industry’s different stages of production, distribution and marketing. Carnegie Steel Co. controlled steel mills as well railroads and mines. Rockefeller used the “horizontal Integration” method to control oil production. Horizontal integration was the combination of two or more businesses doing identical work. To expand horizontally, Rockefeller purchased many refineries. Although he later moved to vertical integration, his beginnings were very different. Carnegie believed that first wealth should be gained before wealth can be used to improve the overall well-being of people. He created many schools and founded philanthropic institutions. Rockefeller began giving, not Carnegie. This was unlike Carnegie. He was also a Philanthropist. But he had an entirely different reason. A second difference is the way they dealt avec competition. Carnegie made it necessary to purchase other Pennsylvania mills because they were selling at such low prices. Carnegie was able purchase out other mills in Pennsylvania because the steel they sold at such low prices made no profit for them. Rockefeller’s actions were quite different. He was known for having hired thugs and forming alliances to increase the prices of other corporations. While Carnegie would remove the competition directly and fairly, he would only lower his prices. Both Carnegie, Rockefeller and their respective business models had their advantages and disadvantages. Standard Oil was an important contribution to society. It set new standards and helped to ensure that oil is a flourishing business. Carnegie’s donations enabled libraries across the country and had positive effects on society.
