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Monopoly: The Perfect Case Study For Oligopoly

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ABSTRACT
Electronic commerce (E- Commerce) is buying and selling of goods on an online platform. An advantage of E- Commerce over the brick and mortar concept is that both, buyers and sellers have the world at their computer screen thereby taking care of the product needs. Also, it lowers the geographical and distance barriers.
The major issue that holds back the concept is the touch and feel experience before buying the product. Brand names and quality assurance measures are a matter of prime importance to the customers. A customer centric approach is followed by the firms as their growth is solely dependent on consumer satisfaction which helps in developing and maintaining the reputation. (John Freebairn, 2001, pg-12)
In this research paper, …show more content…

2. Monopoly
Monopoly is a market structure where there is only seller which means it does not have competitors in its industry. The fact that monopoly has the liberty to set the price it wants to charge for its product distinguishes it from its competitors. A competitive firm does not have such liberty. It has to take the market price as given. Monopolies face a dearth of economic competition in producing the goods and services and also face a challenge in keeping up with the substitutes. A monopoly firm gains its market power from barriers to entry thereby enjoying significant market power. (Sean Flynn, 2011, pg-152)
Monopoly in e-Commerce
Alibaba.com is the primary company of Alibaba Group and is the world’s largest online commerce company. Jack Ma, a former school teacher, founded the company in 1999. It has hundreds of millions of users, and has a millions of merchants and businesses. It runs more business than any other company in the same domain. It is the most popular destination for online shopping. Transactions upto a sum of $248 billion were reported last year, which was more than those of eBay and Amazon.com combined

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