Monopolies Essay -- Monopoly Business Marketing Essays

MonopoliesWhat is a monopoly? According to Websters dictionary, a monopoly is the scoop command of a commodity or service in a minded(p) market. Such function in the hands of a few is ruinous to the public and individuals because it minimizes, if non eliminates normal competition in a given market and reachs unenviable price controls. This, in turn, undermines individual enterprise and causes markets to crumble. In this paper, we impart march several aspects of monopolies, including unfair competition, price control, and horizontal, vertical, and conglomerate mergers. partial CompetitionBarriers to Entry. In general, a monopoly by wizard comp any(prenominal) possesses the precedent to create barriers to entranceway for competing companies in a particular market. Also, virtuoso time a federation has achieved a loyal following, it then becomes easy for that company to save control of the market. Thus, leading to elimination of potential competition.Increasing R eturns. In whatever markets, the profits for blue scripts of goods are extremely exaggerated. For example, in the manufacturing industry, each proceeds requires a trusted material and labor cost to produce it. greathearted companies are ofttimes able to under-cut competitors prices, drive them prohibited of the market, and then revive prices again.1 Consequently, this increased volume increases profit, allowing such companies an even greater power. In drop Information. Often, once a company gains control of a particular market, that company does non break out complete instruction in regard to their harvest-times. Such is the fortune in the sure Microsoft fair case. Microsoft not only does not disclose complete information on their software products, further also goes one step advertize by making their software products incompatible with opposite operating systems. As a result, the consumer has no choice but to taint Microsoft software products exclusively . at once a company has successfully dominated a business market, they posterior use that control to move into other markets bySqueezing out competitorsDominating sales of the product Controlling prices of the productAcquiring special companies, inside and outside, of the fieldEnforcement. The Antitrust Division of the division of Justice is trusty for protecting the competitory process through enforcement of antitrust laws. The Division has challenged bar... ...titive effects. Third, the business office assesses whether entry would be timely, seeming and sufficient both to deter or to counteract the war-ridden effects of concern. Fourth, the Agency assesses any efficiency gains that somewhat cannot be achieved by the parties through other means. at long last the Agency assesses whether, but for the merger, either party to the transaction would be likely to fail, causing its assets to start the market. The process of assessing market concentration, potential adv erse competitive effects, entry, efficiency and misery is a tool that allows the Agency to answer the eventual(prenominal) inquiry in merger analysis whether the merger is likely to create or deepen market power or to facilitate its exercise. polishNo one company or individual should have exclusive control of a commodity or service in a given market. prosperity in the high-technology economy of the 21st Century will depend on strict enforcement against monopolies that lessen competition along with keep encouragement of innovation. The section of Justice must continue to open markets and get a line that they are competitive for the benefit of American businesses and consumers. Monopolies Essay -- Monopoly Business marketing EssaysMonopoliesWhat is a monopoly? According to Websters dictionary, a monopoly is the exclusive control of a commodity or service in a given market. Such power in the hands of a few is harmful to the public and individuals because i t minimizes, if not eliminates normal competition in a given market and creates undesirable price controls. This, in turn, undermines individual enterprise and causes markets to crumble. In this paper, we will present several aspects of monopolies, including unfair competition, price control, and horizontal, vertical, and conglomerate mergers.Unfair CompetitionBarriers to Entry. In general, a monopoly by one company possesses the power to create barriers to entry for competing companies in a particular market. Also, once a company has achieved a loyal following, it then becomes easy for that company to maintain control of the market. Thus, leading to elimination of potential competition.Increasing Returns. In some markets, the profits for high volumes of goods are extremely exaggerated. For example, in the manufacturing industry, each product requires a certain material and labor cost to produce it. Large companies are often able to under-cut competitors prices, drive them o ut of the market, and then raise prices again.1 Consequently, this increased volume increases profit, allowing such companies an even greater power. Incomplete Information. Often, once a company gains control of a particular market, that company does not disclose complete information in regard to their products. Such is the case in the current Microsoft antitrust case. Microsoft not only does not disclose complete information on their software products, but also goes one step further by making their software products incompatible with other operating systems. As a result, the consumer has no choice but to buy Microsoft software products exclusively.Once a company has successfully dominated a business market, they can use that control to move into other markets bySqueezing out competitorsDominating sales of the product Controlling prices of the productAcquiring additional companies, inside and outside, of the fieldEnforcement. The Antitrust Division of the Department of Justic e is responsible for protecting the competitive process through enforcement of antitrust laws. The Division has challenged bar... ...titive effects. Third, the Agency assesses whether entry would be timely, likely and sufficient either to deter or to counteract the competitive effects of concern. Fourth, the Agency assesses any efficiency gains that reasonably cannot be achieved by the parties through other means. Finally the Agency assesses whether, but for the merger, either party to the transaction would be likely to fail, causing its assets to exit the market. The process of assessing market concentration, potential adverse competitive effects, entry, efficiency and failure is a tool that allows the Agency to answer the ultimate inquiry in merger analysis whether the merger is likely to create or enhance market power or to facilitate its exercise. ConclusionNo one company or individual should have exclusive control of a commodity or service in a given market. Prosperit y in the high-technology economy of the 21st Century will depend on strict enforcement against monopolies that lessen competition along with continued encouragement of innovation. The Department of Justice must continue to open markets and ensure that they are competitive for the benefit of American businesses and consumers.