Horizontal Integration, Vertical

Integration, and Social Darwinism

Horizontal Integration

Joining together and controlling as many firms from the same industry as possible.

Ex.- Standard Oil Company bought up all the refineries to gain control of the refining industry.

Vertical IntegrationTaking control of each step in the production and distribution of a product, from acquiring raw materials to manufacturing, packaging, and shipping.

Social DarwinismBased on Charles Darwin’s theory of evolution, this belief held that the best run businesses led by the most capable people would survive.

It is “survival of the fittest” in the business world.

Laissez-fairePeople who believed in big business and little government interference believed in laissez-fair.

It is from the French, meaning “allow to do.” To businesses, it meant “leave business alone.”