- Bitcoin alternatives: the most important other cryptocurrencies
- Defining Your Corporate Values? Keep These Things In Mind
- Restaurant Leadership Conference 2022: What You Missed + Need to Know
- What Is FDIC Insurance and What Are the Coverage Limits? – NerdWallet
- Peanut Butter Mug Cake (Easy 5 Minute Microwave Dessert without Egg!)
The following monopoly examples provide various types of monopolistic businesses. The examples are both theoretical and practical. Some companies are monopolistic in the field they trade in. Since there are a lot of monopoly examples, not all variations and types are explained here, but the outline of all types remains the same, i.e., the firm or a company is a sole seller of a product with no competitors or substitutes.
You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
Source: Monopoly Examples (wallstreetmojo.com)
Top 8 Examples of Monopoly in Real Life
The following are examples of monopolies in real life.
Monopoly Example #1 – Railways
The government provides public services like the railways. Hence, they are a monopolist because new partners or privately held companies are not allowed to run railways. However, the price of the tickets is reasonable so that most people can use public transport.
Monopoly Example #2 – Luxottica
Luxottica – A company that owns all the major brands of sunglasses. The company has bought almost all the major eyewear brands. However, they are still named differently. It creates an illusion in the customer’s mind that they have a variety of sunglasses to choose from, although they are all manufactured by one company. Luxottica produces more than 80% of the eyewear worldwide.
Monopoly Example #3 -Microsoft
Microsoft – Microsoft is a Computer and software manufacturing Company. It holds more than 75% market share and is the tech space’s market leader and virtual monopolist.
Monopoly Example #4 – AB InBev
AB InBev – A company formed by the mergerMergerMerger refers to a strategic process whereby two or more companies mutually form a new single legal venture. For example, in 2015, ketchup maker H.J. Heinz Co and Kraft Foods Group Inc merged their business to become Kraft Heinz Company, a leading global food and beverage firm.read more of Anheuser-Busch and InBev distributes over 200 types, including Budweiser, Corona, Beck’s, etc. While these beer names are different and have different compositions to give a different taste, they belong to a single company. So, when people consume different Beers, they are paying a single company in a sense.
Monopoly Example #5 – Google
Google has become a household name and whenever we don’t know any answer, probably googling is the answer. With their secret algorithm, the biggest web searcher controls more than 70% market share. In addition, the company has grown into a web of services interlinked like maps, Gmail, search engines, etc. As a result, the company has left its competitors – Yahoo and Microsoft- behind its innovation and technological advancement.
Monopoly Example #6 – Patents
Patents provide a legal monopoly to a company, albeit for a short period. When the patent is in force, no other company can use its invention for its purposes. For example, a casino in Genting Highlands, Malaysia, held an exclusive patent for legalized casino, and it enjoyed the legal monopoly for years in Malaysia.
Monopoly Example #7 – AT&T
In 1982, AT&T, a telecommunications firm, was the sole supplier of telephone services across the U.S., which was violating the antitrust laws. Due to its monopolistic activities for service as essential telecommunication, the company was forced to split into six subsidiaries called “Baby Bells.”
Monopoly Example #8 – Facebook
Social media is the new market in the current century. While the users are offered free services, the companies earn from the advertising revenueRevenueRevenue is the amount of money that a business can earn in its normal course of business by selling its goods and services. In the case of the federal government, it refers to the total amount of income generated from taxes, which remains unfiltered from any deductions.read more. With its huge portion of the market share, Facebook almost has a monopoly in this business. The company is ahead of all its competitors like Google+, Twitter, etc. It has seen organic growthOrganic GrowthOrganic growth is the rate of growth that a company achieves by increasing sales revenue by increasing volume of products sold or by achieving greater operational efficiency leading to a reduction in the cost of production or any other internal improvement.read moreOrganic growth is the rate of growth that a company achieves by increasing sales revenue by increasing volume of products sold or by achieving greater operational efficiency leading to a reduction in the cost of production or any other internal improvement.read moreOrganic growth is the rate of growth that a company achieves by increasing sales revenue by increasing volume of products sold or by achieving greater operational efficiency leading to a reduction in the cost of production or any other internal improvement.read moreOrganic growth is the rate of growth that a company achieves by increasing sales revenue by increasing volume of products sold or by achieving greater operational efficiency leading to a reduction in the cost of production or any other internal improvement.read more in users and social media advertisers and acquisitionAcquisitionAcquisition refers to the strategic move of one company buying another company by acquiring major stakes of the firm. Usually, companies acquire an existing business to share its customer base, operations and market presence. It is one of the popular ways of business expansion.read more of other companies like Whatsapp, Oculus Rift, etc. The company is so big that they recently charged it with affecting the users’ sentiments on how the elections are fought and inclines them towards a single person or a party.
While monopolies are common in the capitalist economy, governments check that they do not take advantage of this and charge the customers high rates for their goods and services. Moral laws are made to verify the monopolistic prices of the companies. In addition, the governments have made antitrust laws to protect consumers from the predatory behavior of monopolistic companies.
Monopoly Examples Video
This has been a guide to Monopoly Examples. Here, we discuss its definition and top 8 monopoly examples in real life with detailed explanations. You can learn more about accounting from the following articles: –