This illustrates the relationship between railroad expansion and corporate America. It also was a start for John Rockefeller, a local oilman who believed in vertical integration and also created horizontal integration. Horizontal integration was a form of control, which meant buying out your competitor legally or illegally... displayed 300 characters
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His method was very similar to Carnegie's: cost cutting and efficiency. Rockefeller would use aggression and dishonesty to force out competitors. He would sell below cost to repress rivals, and when they tried to go against him, he would set up agreements with bigger benefits for him. Boyer explains in "The Enduring Vision", Rockefeller integrated the oil industry both vertically, by controlling every function from production to local retailing, and horizontally, by merging companies into a giant system with stockholders involved... displayed next 300 characters
Before expanding the scope of the firm through horizontal integration, management should be sure that the imagined benefits are real. Many blunders have been made by firms that broadened their horizontal scope to achieve synergies that did not exist, for example, computer hardware manufacturers who entered the software business on the premise that there were synergies between hardware and software...
Genetic elements capable of horizontal transfer and integration into host chromosomes are key agents in the evolution of cellular genomes; bacterial pathogenicity in particular is shaped by integrative elements that can carry with them genes promoting virulence...
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