Monopoly Market: Real Examples in the USA, Canada, Australia

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A monopoly is a market structure where a single company holds all the market share. The company has total control of the prices and output of the market. This company can change the product price without bothering about the competition.

Patents, licenses, legal requirements, and high initial capital are some factors that enable a monopoly to exist.

Following are the Real World Examples of Monopoly Market in the USA, Canada, Australia,

Real World Examples of Monopoly Market in the USA, Canada, Australia

1. Carnegie Steel Company in the United States

Andrew Carnegie invested heavily in the steel industry in 1873 and raise the quality of steel while reducing its price by using technological innovations such as the Bessemer process.

Step by step, Carnegie Steel Company obtained control over every level involved in steel production, from raw materials, production, transportation to sales and distribution. Carnegie Steel Company was the sole seller of steel which company has almost the entire steel industry in the United States.

You may refer to the below articles for more information:

2. Canada Post

Canada Post was the only service available for mail delivery in the domestic-letter market. It was argued that the cost of postal services was increased. But as the sole service available, consumers had to use the service without any choice.

You may refer to the below articles for more information:

3. Standard Oil Company in the United States

John D. Rockefeller and his business partners started an oil company called “Standard Oil” and operated two oil refineries in Cleveland in America. In 1874, Standard Oil Company acquired new oil pipeline networks. Gradually, Standard Oil Company made a deal with the other companies to get ownership of nearly all the oil pipelines in the nation.

By 1880, Standard Oil Company controlled 90% of the U.S. oil refining business, making it a monopoly in the industry.

You may refer to the below articles for more information:

4. The American Tobacco Company

The American Tobacco Company was incorporated in North Carolina in 1890. The company improved its machinery for mass production and series of mergers, the company could take control of the American cigarette industry.

You may refer to the below articles for more information:

5. AT&T in the USA

AT&T is one of the world’s largest telecommunications and mobile telephone services providers in the U.S., founded in 1983. AT&T’s local telephone service was broken up into seven baby bells in 1984. This resulted in more choices and lower price packages for the consumers.

AT&T and the Baby Bells enjoyed many successes over the years in terms of profit and market share. By 2018, most of the Bells were joined together as a single company called AT&T.

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6. Supermarket industry in Australia

The supermarket industry in Australia is considered a monopoly. Woolworths is a significant leader brand in the supermarket and retail store industry as it has captured 1/3rd of the entire market space.

You may refer to the below article to get more information,

7. Pharmaceutical Companies in the World

The pharmaceutical industry is a research-oriented industry. These companies obtain a patent for their positive research projects. These patents provide a 20-year monopoly right, during which a pharmaceutical company enjoys market exclusivity and can charge a monopoly price for its products.

You may refer to the below articles for more information:

8. Meat Industry Giant in America

Tyson Foods, Inc. is an American multinational corporation founded in 1935. According to the below-referred article, the consumer is only picking between different versions of the same commoditized beef, chicken, and pork that is produced through a system that this company pioneered.

You may refer to the below article to get more information,

9. Social Media Market in the World

The social media market is considered a monopoly. Facebook is the market share leader in social media. This company owns Instagram and Watsapp too. It has the pricing power and it has the dominant user base all over the world.

You may refer to the below article to get more information,

Read More:

Market Structures

Monopoly Market

Oligopoly Market

Monopolistic Competition

Perfect Competition

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