how did horizontal integration change the way business was done in america

Question

big corporations could control the cycle of a product from creation to sale
large companies grew larger by merging with other companies or aquiring them
big companies were not allowed to destroy their smaller competition
business leaders could move into jobs of similar status where their skills where more of a fit

Answer 1

Horizontal integration refers to the expansion of a company's control over a particular industry or market by merging with or acquiring other companies that operate at the same stage of production. This form of integration brought about significant changes in the way business was conducted in America. Here are some ways horizontal integration influenced business practices:

1. Control over the entire production cycle: Through horizontal integration, big corporations gained the ability to control every stage of the product's life cycle, from creation to sale. This allowed companies to streamline operations, reduce costs, and exert greater control over the quality, distribution, and pricing of their products.

2. Growth of large corporations: Horizontal integration facilitated the rapid expansion of large companies. By merging with or acquiring competitors or companies operating in the same industry, corporations grew larger, economies of scale were achieved, and market dominance increased. This consolidation led to the emergence of powerful monopolies or oligopolies that held significant market share and influenced industry dynamics.

3. Limited competition: As major companies absorbed smaller competitors through horizontal integration, competition within certain markets decreased. This resulted in reduced choices for consumers and potentially higher prices. This monopolistic concentration of power drew criticism from proponents of fair competition.

4. Job mobility for business leaders: Horizontal integration allowed business leaders to move into jobs that were more aligned with their skills and expertise. As companies expanded their operations, new positions and opportunities were created, enabling executives to transition to roles where they could maximize their abilities and contribute more effectively.

Overall, horizontal integration transformed the business landscape in America by consolidating power into the hands of big corporations, streamlining the production process, reducing competition, and providing new professional opportunities for business leaders.