MONOPOLIES AND CARTELS - Research Paper Example

773601 - MONOPOLIES AND CARTELS Total Price: $10 Messages: 3 new 8 total Macro & Micro economics, Research Paper Topic: MONOPOLIES AND CARTELS Instructions: Please read and answer questions There has hardly been a time in the last hundred years in which some company was not under attack for monopolistic practices. First, it was Standard Oil and the railroads. Later, it was AT&T and Microsoft. It’s an ever changing list. Questions: 1. Please do a research on the changes that have occurred in the airline industry since the deregulation of the industry.

Clearly, the deregulation of the airline business has led to such a time when there has been more openness in the penetration of the market by smaller companies that otherwise would not be able to overcome the limitations that were imposed on entry and prices when the deregulation did not exist. In other words, the deregulation of the industry has led to a massive and rapid expansion of the industry. The effect of this to all industry players and stakeholders is that competition has arisen and become very keen.

Today, it takes only a company with improved strategic plan and implantation policy to survive and succeed as a first force 2. What economic principles do you see that the successful firms have employed? In the midst of competition, the only way to survive and be successful is to follow a set od economic principles that makes you stand out among your competitors. In this regard, it could be seen that the companies that have succeeded in the airline industry since the deregulation of the industry have devised the creation of competitive advantages over their competitors to succeed.

Indeed through the creation of competitive advantage, successful companies have critically studies and researched into the weaknesses of their competitors and built on those weaknesses to create major strengths for themselves (quote). This way, they successful companies offer to customers and clients, services that the customers and clients look for in the conduct of their daily business that have been missing. Consequently, they become the preferred choice because they are what the customers desire to patronize.

A typical example can be given using the customer satisfaction as a competitive advantage. Most successful companies have come to realize that running an airline is not just about offering cheap prices for services and products but making customers feel comfortable and satisfactorily treated. To this end, they embark on a strategic customer satisfaction principle to ensure that they become the preferred options for customers who want satisfied services. 3. What economic principles do you see that the struggling firms have failed to employ?

Clearly, companies that been struggling have refused to employ basic principles of research and development, commonly referred to as R&D. With a highly competitive industry that is virtually free of all forms of monopoly today, it would take only an intensive research and development policy by failing companies to identify specifically what it is that they need to adjust their line of business to so as to catch the attention of customers and client. In a typical example, through a thorough research and development program, an airline company would come to realize how the absence of advertisement and publicity is denying their business and presence from reaching the limelight.

They would therefore strategize for a long term corporate branding project that is based on commercial advertisement . 4. How would you describe the market structure of your employer? 5. Provide economic support for your conclusion Evaluate your own employer as to its industry becoming an oligopoly – what could lead it in that direction – what could inhibit it from becoming an oligopoly?For a company that is heading for the direction of becoming oligopoly,