A Level History - America - Practice Exam

What was one of John D. Rockefeller's key strategies in the oil industry?

1. Saw the importance of advertising

2. Focused solely on production

3. Used cost cutting methods via cheap transport

4. Prioritized retail expansion

The correct answer is: Used cost cutting methods via cheap transport

John D. Rockefeller's key strategy in the oil industry was indeed centered around cost-cutting methods, particularly through the use of cheap transportation. By controlling the transportation of oil, which included negotiating favorable freight rates and investing in pipelines, he was able to significantly reduce the operational costs associated with moving his product. This strategy not only allowed him to undercut competitors on price but also ensured a more efficient distribution network for his oil, establishing the Standard Oil Company as a dominant force in the industry. The other strategies such as advertising, focusing solely on production, or prioritizing retail expansion were not as central to his foundational success as his innovations in transportation and logistics, which played a crucial role in his growth and market control.