A monopoly is the sole seller of its product so it is in “a position of economic strength” because there is no competition, the monopoly can “behave to an appreciable extent independently of its competitors, customers and ultimately of its consumers” without losing market share. The definition represents an oligopoly to an extent because oligopolies do have competition in their market with other firms producing similar or identical products. Therefore they cannot act independently of its competitors. However, oligopolies are price makers and are in a position of economic strength. The definition is more fitting to oligopolies that collude and form cartels because they become more like a monopoly.
Although by underpaying the employees, the stakeholders would gain more profits, however it has resulted in significant unhappiness among the majority of the employees. Thus, this action is considered as immoral. Moreover, justice ethics evaluates ethicalness on the basis of fairness, distributive, procedural, and interactional (Fraedrich, 2013). For Wal-Mart, it failed to comply with the ethical standard of providing fair treatment toward its employee and discriminated the employees ' right. Thus, in justice ethics is considered as immoral.
Monopolies are not good for the economy for several reasons; there will often be higher prices, lower quality products and more. For gas it is hard to get a better quality, it is a homogeneous market, all products are the same. But there are some characteristics of a Monopoly that are applied in this case. First, the price of gas. Because Gazprom is a monopolist it is easier to change the price, since there are no competitors in their area and barely any reasonable substitution good.
They induce the consumers to buy products that are not even on there needs list or surpass the basic needs. (778) The marketers are of the view that every consumer has the power to evaluate and choose what he wants. It is very difficult to persuade any consumer to buy something which they don’t need. With this excessive advertising which is fully supported by the marketers, consumer expectations about the product also increase. Here advertisers tend to often misquote in there advertisements and when the consumer expectations are not meet it creates a negative image regarding the authenticity of the company’s
The second case – controlling the market – is where the contrast between small firms and big business contrasts is most evident. The small firm lacks the capacity to influence prices, as both their market share and purchasing power are limited; however, big business possesses an abundance of both. Big business is able to exert their power by influencing prices because their decision to buy can be the difference between survival and failure for suppliers. Furthermore, Galbraith (1967, 30) suggests that the influence of size enables firms not only to control price but also quantity sold. Although Galbraith acknowledges that influence on demand is inexact; One should not discount its importance.
In case of most of the companies, irrespective of the nature or magnitude of their business, return is considered to be an inevitable evil event. The success of any company largely depends on how well it manages the return flow and how effectively their existing supplies chain mechanism accommodates reverse supply chain. It reduces operating costs by reusing products or components and thus can impact the overall business. It is often seen that company spend more time, money and attention on forward logistics while ignoring the reverse chain which doesn’t justifies to business acumen. It is still considered to be an afterthought process instead of a proactive strategy.
The Enogrup Corporation experiences an indirect conflict with its distributors because they lose control over the sales. After transaction process, distributors’ goal is to higher the price of Enogrup’s’ products. In this way they are decreasing the manufacturer’s profit. During information searching process regarding Enogrup’ distributors, was notices the fact that some of them are playing double game. They do this by selling also the manufacture’s competitors, not just Enogrup’s product.
Besides that, there are always problems with market economy system. There are some disadvantages such as the exploitation of workers and uncomfortable working condition, investment priorities and wealth becomes distorted, goods cost will be lower due to the mass produced, prices may give false or inadequate signals to producers and consumers, high levels of unemployment due to the overproduction of goods, and produce a skewed distribution of income through large gap between the rich and the poor. Free competition is the spirit of market economy system, naturally led the group with income and wealth in order to compete with any particular group. The market economy instead of making competitive but it leads to monopoly. In this paper, the writer would like to address the reasons of market economy is a poor choice for developing country to stay
This has been as a result as new technologies available to assist companies in reducing their costs and an increase in market diversity. Although it can be argued that to decide which approach is the most superior depends on the circumstances. The benefits of customer-centric behaviour are evident. These include advantages such as efficiency. This is key to any firm.
Whereas, a number of people said that they would not prefer an imitated product for an original. The foremost reasons for purchasing imitated products were because they are cheaper than the original, had value for money and had similar packaging but, they disagreed with the fact that they were better than the original and that they are similar in quality. There are some people who always check the product name whilst purchasing but there are also some who overlook the product name and sometimes the misinterpretation of logos does affect the purchasing decisions made by consumers. Price and quality are the main factors influencing most while purchasing imitated products but, they prefer purchasing these products occasionally. Depending on the variation of the products available, many people reject the imitated product given by the shopkeeper but they prefer to check the product first and also depending on the budget, product and warranty a decision is taken.