Monopolies have been around for many years, and the examples go as far back as the 1920s. There have been many examples of companies rising up to take over an entire industry, eliminating all their competition and essentially deciding the supply and demand graph for themselves. However, no monopoly can last forever. Eventually a product will come along that is more innovative or cheaper than you can provide customers, and your monopoly may crumble.
One of the biggest examples of this is the Kodak photography company, which at one point accounted for 85% of all film cameras sold and 90% of all film sold in the U.S. Kodak held a monopoly in the film market, and many people today still associate film cameras with the Kodak company. This monopoly however did not last, as the Kodak company missed the consumer switch to digital, losing a large part of their customer base. This company is an example of one of the many monopolies that once ruled an industry but were beat out because of innovation and changing consumer interests.
When I read your title, I immediately thought to myself, "No, nothing lasts forever." Monopolies, though very profitable and advantageous for any firm, generally do not last forever. Some monopolies can go away in a couple years and others last longer, but eventually, they will disappear. Monopolies are granted by patents, which expire after about 20 years. The high profits that monopolies earn might intimidate competitors, but eventually one firm will break through the barrier and the monopoly will tumble. Also, consumers typically prefer an oligopoly to a monopoly, so they will support a government that eliminates monopoly.
ReplyDeleteI think this article is super interesting and brings up a good point about monopolies. If you look to Google, Facebook, or Microsoft, these companies that have been accused of being a Monopoly have lasted quite a while and don't appear to be going away anytime soon. However, As we see these companies rise in power and strength, we see more and more members of society and government become involved in limiting these businesses. I think while monopolies could slow down due to a lack of innovation, a large part of bringing down a monopoly involves the public becoming outspoken and active.
ReplyDeleteGreat post! I think another reason that monopolies don't last in our current climate is because of the large amount of antitrust legislation that exists in the United States. Mostly resulting from the huge monopolies of the late 1800s, especially Standard Oil, large pushes for antitrust activity has continued to this day. Legislation like the Sherman Antitrust Act still discourages monopolies today. This is just another reason that monopolistic companies of the modern age rarely experience longevity.
ReplyDeleteI think that this is an interesting article that presents a solid argument. However, through learning about the power of companies such as Google last week, it seems somewhat possible that they are here to stay. For example, when another company challenges google, they will either buy them out or shut them down. In a case as such, it seems impossible for another company to preform better than them. On the contrary, the government does seem to be interested in Google and the power they have. It seems possible that the government could limit a company of such power, but it doesn't seem possible, yet, that another company can come along and beat companies of such power.
ReplyDeleteLoved the question you raised and the example you brought up to support your argument! I think in determining the longevity of monopolies, there are factors that play a role, like the type of industry. For example, those in the entertainment industry, such as Kodak photography, are usually cut short. This is probably due to how their whole industry is basically based on likability and depends on the trends adopted by pop culture as shown in the documentary "The Merchants of Cool" that we watched in class. Therefore, it's sensitive to consumer tastes and prone to shifts in who dominates next. On the other hand, I feel that industries that are rooted in natural resources or necessary goods are resistant to a shorter dominant expectancy—such as lightbulbs in the electricity industry. There are even lightbulbs that have been renovated to not fuse at all but I think those aren't sold so the companies can maintain dominance and consumers continue to buy. It's also probably why Apple hasn't made a waterproof iphone yet either so it doesn't lose out on all the potential money...I mean there's a whole industry just based around technology repair too.
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