Essay Andrew Carnegie : The Technique Of Vertical Integration
A. Plan of Investigation
Between the late 1800s and early 1900s, Andrew Carnegie ruled the steel empire in The United States. Carnegie controlled the majority of the steel industry in the United States, more than any individual ever had before. Carnegie developed ways to produce steel in the masses and for a lower cost than usual, ultimately putting him at the top. In addition to this, Carnegie moved forward with a vertical integration business technique which made his steel ventures the largest monopoly in the world. Andrew Carnegie revolutionized the steel industry and eventually formed US Steel Corporation in 1901, after forming Carnegie Steel Company, becoming the first corporation in the world to have a market capitalization over 1 billion dollars. This investigation will explore why Carnegie used vertical integration and what effect it had on his steel empire. The text, “A Nation of Steel: The Making of Modern America, 1865-1925,” and an excerpt from “The Gospel of Wealth,” published in the North American Review, June 1889 will serve as principle sources, followed by several other books and videos pertaining to Carnegie and his use of vertical integration.
Word Count: 185
B. Summary of Evidence
“In vertical integration a company that initially engages in only one stage of the production and sale of a good may integrate backward to control its…