0202 Innovation Nation HONORS

Andrew Carnegie used vertical integration in his steel business to reduce competition and make an amazing profit. The operation he used to control every step of the process was mining the ore, mining the coal, shipping to foundry and actually making the steel from the ore, etc. Andrew thought about the process and the development of vertical integration. He used his ideas to his own improvement and he maintained the steel mills but also maintained areas like railways and even coal fields. He arranged for his money to be paid to another one of his businesses. He kept the money in the family, to prevent other companies from putting the “screws” to him and cutting availability and raising his prices. For example, railroads and shipping businesses would be strong competitors but for others because they would all have his business. This facilitated Andrew to vend to other consumers. Roy Oliver Disney who was both the partner and co-founder of Walt Disney Productions, which is now known as The Walt Disney Corporation. Roy and his brother Walter “Walt” Disney, did everything the way they wanted to. They had plenty of strategies and did a lot of producing. So this made them a “vertical integration” company, because this company didn’t depend on anyone’s assistance of any other company to do explicit tasks for them. The company was very imaginative in their own ways as well as very organized. Vertical integration adds more services to society. An example in economic and industry-specific issues on heavy building material companies. As housing markets are feeling “squeezed,” builders are demanding price reductions. For example, pro-dealers have opened manufacturing facilities are creating trusses, wall panels and fabricated products, some other dealers are providing installation services for windows, or doors, etc. Also, larger builders prefer conducting business with all-in-one suppliers that are price competitive and provide innovative products. Although being