Nowadays, the one thing that everyone is very worried about is competition. Whether you look at the competition in studies, now look at the condition of competition regarding admission to good colleges. Think about the competition you get for the job and in business also you have to face competition continuously. Think of that too.
Everywhere there is competition competition competition. Earlier, where competition used to give the feeling that a part is being taken in a challenge or a contest, today, in everything and everywhere, one only hears that there is a lot of competition and it is very tough. In such a situation, what do you think is competition good or bad for us? According to me, you will have mixed reactions to this, because both factors are there in competition. That means good as well as bad. Bad because if the competition is too much and not healthy then it can be very harmful for yourself and for others. And its results are not progressive at all. And good because healthy competition makes us better personality.
Sharpens our skills, talent, and approach, and due to this we are able to move forward and grow fast in life. This means that there should be healthy competition. So should this competition be there in business as well? That is, should we always see a lot of varieties of Cream Biscuit in the shopper and mart, and from chips to rice, we should have a lot of such options, which should not have much difference in price. If this happens, then we will greatly benefit and it happens because many options and reasonable prices are offered at the time of shopping for the same food item or any such city.
But why so? Because of competition. But if this competition withdraws from the business then who will benefit and its loss will be like this, then this business will become a monopoly. In which the business that has captured the market will be profitable and other businesses with similar products and we as customers may suffer losses to a great extent, because it may be difficult for us to find any other option, variety, and reasonable price. In such a situation, it is necessary to understand what is a business monopoly, how it works, what are its types, what are its disadvantages, and some advantages.
To know all this, you have to watch the video completely, invest some time, and then these videos are made on your request, so definitely watch them till the last. So let’s start and understand this monopoly closely. Nowadays business gets a lot of competition in the market due to which sustainable prices and opportunities are created. But when the business does not get any significant competition in any one country, it can create its own monopoly in the market. Although the company can make a lot of profit through monopoly and can focus on the target audience, still it cannot be considered a normal condition of business, because when a company does not get any competition in the industry in the market i.e. There are no strong brands like him in the market, which can compete with his production price, so that company can set its price without thinking. Some monopolies are natural.
That is, many times the products and services of a company are not being offered by any other company. But when a company deliberately removes all its competing companies from the market through legal and illegal actions, then this type of monopoly negatively affects the industry. For example, if there is only one internet company in a state and it has a monopoly on internet services in that area, then without any competitor, that company can easily increase its price and offer very good service, it is also not necessary. will be.
However, there can be different parts of this monopoly in different industries and markets. Free markets only encourage economic conditions in which there is more competition and innovation. But in a monopoly, a business buys all its competitors so that it can dominate the market. In a monopoly, a company manipulates market conditions in such a way that its business serves the majority of customers and there is a very limited amount of pure competition. You have understood the meaning of pure competition, have you not? This means a marketing situation in which many sellers offer similar products at similar prices. This is the opposite of pure competition monopoly, as companies have little control over the price of products.
There are many situations that lead to monopoly, such as the nationalization of an industry or market, in which the government takes over a particular industry or market, such as food production. Many times when a company or a person comes out with its concept product. If they take the copyright of the services, then they become a monopoly in those areas. Some companies buy other businesses to reduce competition, and when there are too many competitors, this can also lead to a monopoly. There can be many types of business monopolies, such as legal monopolies. It is also called a digital monopoly. A legal monopoly is a firm that is protected by law from its competitors. This means that a firm or company has got a government mandate to operate a monopoly in the market. A public franchise can be established through government licenses or legal monopolies through patents and copyrights. For example, in the drug industry, natural monopoly is practiced by pharmaceutical companies. This type of monopoly is formed when a single company or firm is providing service in the market at a lower price in comparison to the combination of two or more companies, then it automatically becomes a natural monopoly of that single company, such as public utilities. In which the government and natural monopolies work together so that everyone can get access to services like natural gas, electric power, and telecommunications.
Similarly, you can see a natural monopoly in tech palm and water services. A company with such a natural monopoly may be the sole provider of a product or service in an industry or geographic location. Next up is Geographic Monopoly. When only one business’s products and services are being offered in a particular location, it becomes a monopoly. This is very common in small towns. Pure Monopoly. If a chips company is the only snack food company in the market, which is selling unique flavored potato chips, then it will automatically become a monopoly, because it does not have any competitor and it will be called a pure monopoly.
Talking about technological monopoly, when a business is using a particular technology, that no one else is using, then that company gets a technological monopoly. For example, if a food delivery company starts using drone technology for food delivery and if it is the only company to do so, then it will definitely become a technological monopoly.
Next is a government-regulated monopoly. When government businesses are the sole providers of a product or service, such as city transit that operates all passenger trains and buses, it is called a government-regulated monopoly. There can be other types of monopolies like this, such as resource, monopoly, growth, monopoly extra. And because we have understood about Common Monopoly, let us also look at the Pros and Cons of Monopoly once, so that there can be more clarity in it. So, let’s know about the pros first, because the benefits should be talked about first of all. Business monopoly gives limited competition to the business.
The sales of such a company are high because there is a high demand for their products and services. This is why their income also increases. Even if the price is high in a monopoly market because there is no competition. That’s why price stability is often seen. In such a situation, the company has to spend less on marketing research and it puts its financial resources on development, production, and recruitment. This means monopoly gives a lot of benefits to a company or business. Let us now revise the calls of this business monopoly as well. We get high prices for this. The choice is very rare. The chances of getting low-quality products also increase. Somewhere there is a difference in the price of the same product in different areas. That is, where a business monopoly gives profit to the business, it has a high chance of giving loss to the customer. So, in such a situation, it is understandable that it is better if there is healthy competition instead of monopoly in most of the areas.
Now let us also tell you that like Monopoly there is only Poli too. Now what is it, let’s know. A monopoly occurs when one business operates exclusively in a market. While Oli is bid when only a few companies participate in an industry or market. For example, instead of having the service of only one utility company in one area, the service of two more utility companies should also be available, so that there is some competition. Oli’s policy can encourage fair competition, because it may be less, but accommodates more than one company. That is, competition remains and the consumer may get less, but the choice is available on the basis of the product. This means that even if there is not a lot of competition, there should be at least a little. And in this way, you have also come to know the difference between Monopoly and Oliver Polly. And what is a business monopoly, how it works, its advantages and disadvantages, everything has now been understood by you and this knowledge will give you a lot of benefits.