Vertical Integration is a basic monopoly of one particular product. “Through vertical integration, a company took over all the different businesses on which it relied for its primary function, for example, Carnegie Steel, which came to control not only steel mills, mines, railroads, and other enterprises.” This quote was taken from The Unfinished Nation by Alan Brinkley, published by McGraw-Hill Companies Inc, and was copyrighted in 2008.
One company controls all aspects of a business on which it relies on for its primary product. One company can control the business so there is no profit to be made in anything other than the final product and owners. The finished product came faster and with more new technologies than before.
Vertical integration created a lasting change in the economic structure of America. It was a beginning of big business and major corporations. It also began, what I call “management chains”, which is in layman’s terms, a hierarchy of management. For example, there is a regional manager who is in charge of 7 factories, each of those 7 factories has its own manager, and each station has its own manager, and each manager follows the chain of command where the station manager would talk to the factory manager and he would talk to the regional manager, and they would each have their own responsibilities.
“A vertical combination is one that brings together a number of plants, each of which concerns itself with a separate stage in the production of the finished product. This...