2. Please respond to this post. (KJ)
After reading about the Standard Oil Co Inc.; I learned that the company was founded by John D. Rockefeller, a renounced businessman, and a wealthy man from the United State. The company was an Oil producing, refining and supply company. It was the largest company of its kind at the time and endured massive success in the oil business due to the dominance in manufacture and supply of its product, in other terms called vertical integration (Fernandes, et.al 2016).
Trust busting is a strategy employed by the Government to break up monopolistic system of marketing. This is otherwise known as trust busting. Standard Oil Company destroyed most of its competing firms through the integrations (Bogus, et.al 2016). They made it easier for the standard oil to aggressively price its products so that other suppliers couldn’t acquire them because of the practice of monopoly. This raised awareness of the Government which led to total eradication of monopoly practice. As a result of Government effort, the supreme court ruled that the monopoly be broken up in the Standard Oil company and like company such as American Tobacco. The main advantage of the trust is that company get to grow at a faster rate within a short period of time. It also encourage open market. It allowed for a short-term growth. However, it has a limitation; and that’s a lack of competition, trade protectionist, and inability of other companies to compete, and that end up in monopoly again.
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