The Rise of Big Business III–New Strategies

1. The Perils of the National Market
   1. Decline of Local Industries
   2. Economic Instability and Falling Prices
   3. Cutthroat Competition
2. Attempts to Control the Market
   1. Trade Associations--Price-Fixing and Market Allocation
   2. Formalized Association
      1. The Trust
      2. Reaction to the Trusts--The Sherman Anti-Trust Act (1890)
      3. Consolidation--New Jersey and the Holding Company
   3. Assessment
      1. Vulnerability to Outside Low-Cost Competitors
      2. Success When It Becomes the Low-Cost Competitor--John D. Rockefeller and the Standard Oil Trust
         1. Forcing Competitors to Join
         2. Consolidating Production in Large-Scale Operations
         3. Vertical Integration--Coordinating Product Flows From Wellhead to Retailer
         4. Eliminating Market Transactions
3. Opportunities of the National Market--New Industries--Gustavus Swift and Dressed Meat
   1. The Need--Urban Population Outrunning Meat Supplies
   2. The Opportunity
      1. Large-Scale Production in Chicago
      2. Transportation--The Refrigerated Boxcar
      3. Distribution--A Network of Warehouses
      4. Marketing--Breaking Down Prejudice With Branding and Advertising
      5. Supply--Branch Plants in the West
      6. Coordination--Bureaucratic Management Tied by Telegraph
4. The Success of Giant Enterprise
   1. Enormous Profitability--The First Great Industrial Fortunes
   2. Defensive Imitation--The "Great Merger Movement"
   3. Not Appropriate for All Industry