asked 218k views
4 votes
What does Rockefeller do to try to keep kerosene in peoples' homes?

A) Lower prices
B) Advertise aggressively
C) Innovate product design
D) Control distribution

1 Answer

4 votes

Final answer:

John D. Rockefeller maintained kerosene in homes by controlling distribution through vertical and horizontal integration of the oil industry, which included aggressive price wars and mergers with other companies.

Step-by-step explanation:

John D. Rockefeller sought to keep kerosene in people's homes predominantly through the strategy of controlling distribution. He did this by establishing a vertically integrated structure in his company, Standard Oil, allowing him to manage all stages of the oil industry, from production to delivery. This vertical integration, along with his other business practices, enabled Rockefeller to obtain significant discounts from suppliers and shippers, allowing him to lower the price of kerosene substantially. In addition, he pursued a policy of horizontal integration, acquiring other refineries and exerting pressure on competitors through aggressive price wars, which eventually led almost all refineries to come under his control, giving him the power to manipulate distribution networks and oil prices.

answered
User Hardik Patadia
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