How they do it: Standard Oil Company’s successful, but illegal, integrator strategy ultimately lead to its demise. In a landmark case, the U.S. Supreme Court dismantled it in 1911, as it was ruled to be an illegal monopoly. Standard Oil dominated the oil products market initially through horizontal integration in the refining sector, then, in later years vertical integration alongside the value chain, streamlining production and logistics, lowering costs, and undercutting competitors.
Razor And Blade
How they do it: Standard Oil Company is considered a pioneer of the Razor and Blade pattern. It sold cheap petroleum lamps alongside expensive oil to be used in the lamps as a consumable.