During the Industrial Revolution, corporations were organized or combined in two main ways:
1. Vertical Integration: This is when a company controls multiple stages of the production process for a product. For example, a steel company that owns iron ore mines, transportation infrastructure, and steel mills would be vertically integrated. By owning all these stages, the company can have more control over costs and quality.
2. Horizontal Integration: This is when a company acquires or merges with competitors that are at the same stage of production. For instance, if a car manufacturer buys out other car companies, it would be an example of horizontal integration. This strategy can help a company increase its market share and eliminate competition.
Both vertical and horizontal integration were common ways that corporations expanded and consolidated power during the Industrial Revolution, shaping the modern business landscape we see today.
