U.S. Steel is an integrated steel producer, founded by J.P. Morgan. U.S. Steel bought Carnegie Steel Company, Gary's Federal Steel Company and William Henry "Judge" Moore's National Steel Company in 1901. At that time, it was the largest corporation in the world, producing 67 percent of all the steel in the United States. Now it produces less than 10 percent, yet it was the world's 12th largest steel producer in 2010.
As a horizontal monopoly, U.S. Steel created the barriers to entry by occupying most steel demands and competing. Also, setting a steel company required large fixed costs.
Government tried to break up U.S. Steel by using antitrust laws in 1911, but it failed. President Harry S. Truman tried to control U.S. Steel, but the Supreme Court blocked his attempt. In 1962, President John F. Kennedy successfully curved the increasing steel price when he pressured through his magnificant speech. Despite Federal Government's effort, U.S. Steel kept consolidating.
U.S. Steel had labor policies of low wages and opposition to unionization. It ungerwent several strikes; most of which were not successful.
Unlike U.S. Steel, Carnegie Steel was an examplery of vertical monopoly (integration). It was engaged in different parts of steel production, so it controlled the supply chain (production process) and thus produced efficiently. Vertical integration has lower costs, higher investments and strategic independence.
