John Rockefeller's Impact On The Oil Industry

John Davison Rockefeller is one of the most influential businessmen North America has ever seen. He is responsible for some of the most prominent changes industries, and even business laws have ever seen. John came from a rather modest upbringing but was armed with the determination and strong work ethic that eventually allowed him to create a fortune. Once at the helm of his company John always searched for ways to gain a competitive advantage over his competitors, as well as loopholes to save money not just at the time, but moving forward as well. It was through these advantages he was able to amass a monopoly over the oil industry and many others. The Rockefeller name has lived long past John D and remains a prominent brand today, solidified

His strategies to this day remain synonymous with success and continue to evolve as the market requires.

John began his journey through life in a very average situation, he had 5 siblings and both parents. Even in his early days, John was an industrious boy, utilizing a variety of methods to earn money. He would raise turkeys, sell candy, and do odd jobs for neighbours. Eventually, John’s family relocated to the Cleveland area in Ohio, where he eventually attended high school and a commercial college. It was here that he was first immersed in a real business practice, bookkeeping. His brief time at commercial college was spent studying it, and the skills he learned eventually became invaluable in his crusade to become wealthy. It was at age the young age of 16 he entered the workforce, finding work as an office

Rockefeller saw extraordinary amounts of success during his reign at Standard Oil and the industry as a whole. The tactics he employed to consolidate and dominate the market enabled him to continue to grow and expand his empire. Rockefeller was known for his merciless approach to business, as well as his willingness to take risks. A key strategy Rockefeller utilized was eliminating competition, he achieved this by buying out smaller companies, then combining the assets under Standard Oil. In pursuit of these smaller enterprises, he would often employ “predatory pricing”. The act of undercutting a competitor's prices until they were forced out of business. This business model/strategy is a textbook use of horizontal integration, the act of buying up competitors. Rockefeller's expansion did not stop at the Oil industry, however, as he actively engaged and negotiated with railroads. Through budding relations with the railroads, Standard Oil was able to secure preferential rates for shipping. The second tactic Rockefeller employed is known as vertical integration. Vertical integration is a business strategy that involves controlling aspects crucial to the original business. In the case of Standard Oil, the crucial aspects Rockefeller identified were everything from production to transportation to refining. Once in control, Rockefeller was able to reduce costs while increasing efficiency, furthering his grip on the market. As his empire grew, so did the criticism of his