How was Rockefeller able to become so successful in the oil business?
First, he secured the transportation of oil by buying train slots at discounted prices from railroad companies. This was done because he had good relationships with the railroad stakeholders. [ By securing the transports, he was able to buy out many small oil producers at decent prices. Some of the purchases made, if taken into today's business practice, may be viewed as hostile takeovers. By
controlling the transport prices, he had leverage to negotiate buy outs of many small oil producing companies in the areas where railroads were built. This is exactly the propositions that were offered by Rockefeller to the railroads investors to encourage them to build more and more railroads systems. The longer the railroads were built, the more oils they may transport, and overtime, more oil companies to acquire. This business model perhaps is the first legal, and systematic monopoly. Although some may view Rockefeller as cold, ruthless businessmen, however, his contributions in supply-chains management, capitalism efficiency, and strategic business decisions helped sparked a major economic revival in the US, laying the foundations of modern business management used throughout the world today. ]
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