Vertical and Horizontal Integration -- the Gilded Age

There are two different types of Integration that we learned about during the unit about the Gilded Age. These two types were verical and horizontal integration. Vertical integration is when one ownes several phases of production, which therefore eliminates the need for a middle man. This level of production allows the owner to be suffient without the help of other companies to produce anthing for him. This then leads the owner to have a monopoly over a certain industry. Horizontal integration is when one owns all of just one phase of production. This level of production allows an owner to control all production of something all over the country. Horizontal integration can lead the one to having a monopoly in a particular industry.

There are many famous people during the Gilded Age who were partakers in these two types of integration. Andrew Carnegie is an example of someone who owned all of one phase (vertical integration). He had his own steel company and then began making investments in coal, oil, and iron companies and then started manufacturing railroad cars. Then he went on to make his own iron bride bulding comapnay and telegraph firm. For more information about Andrew Carngie . Rockefeller at first an example of horizontal integration but later his company started to become more vertical. He owned all of mulitple oil companies which is horizontal. Later he started companies that made the barrels that oil was put into and also owned transportation companies so he could transport his own oil, this is vertical. He created a trust for his oil company and became very rich. For more information about Rockefeller .

A mordern example of a vertical company is Exxon Mobil. It is an oil comapny and they drill their own oil, produce the oil, ship oil, and has workers hired to do reseach for their corporation. A modern example of horizontal integration is the schools part of the North Deanery here in Indiana. The North Deanery connects a series of schools together and can control what high school(s) are adertized within the grade schools within the North Deanery.


Horizontal and vertical integration are important fro the expansions of companies. It helps owners expand their companies hiw they want. Vertical integration is more difficult because it involves gaining control of multiple phases of production. Horizontal integration only involves owning multiple of on phase, which leads to monopoly of a given industry.