Let’s Discuss Market Monopoly
“Many factors lead to market monopoly and businessmen try to make the most of these factors so that they can make their business the envy of all. ”
Monopoly in business is the dream of every businessman. In fact, the position of being in monopoly is a guarantee that you would reap rich profits. Many factors lead to market monopoly and businessmen try to exploit these factors so that they can make their business the envy of all. Let’s try to understand these factors a bit.The most important factor that leads to monopoly is the control over resources in any filed of business. This control is of a high degree and is obtained even by foul means. Such a control deprives other businesses of market advantage and the monopolist is all ready to fire the shots.
Similarly, if a company is able to raise its technology to such a level that other companies cannot bring such advanced products in the market, it is said to be in monopoly. A very familiar example is of the search engine ‘Google’. Many other companies vie with it but Google has advanced its technology to such an extent that it is able to scan the most number of online pages in an instant.
Another reason of monopoly can be the unmatched service rendered by a business in question. Other companies may be dealing in the same products but because of their inability to satisfy customers they gradually fall out of race.
Then we have the case of state monopoly. Such monopolies are often created in the interest of nation. For example no or very less private players are allowed to enter the arms and ammunition business. It’s almost totally a government affair and governments take action on those companies who want to enter this sector on their own.
However, if a government chooses a private company to produce such products and that company is able to deliver the goods even after following all the stringent rules and regulations, it is said to have created the government granted monopoly. It’s because the governments want products on such a large scale that no other company is able to come near such a company in production.
If the above case takes place without government intervention, a natural monopoly is said to have taken place. Usually, this happens when a company is able to acquire most of the market by its foresight, hard work, research and manipulation.
Author - DeeKay
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