Building a business monopoly
Although most countries are against monopolies there is the constant desire or people to create business monopolies. A monopoly is the state by which a company controls a large percentage in a certain market. For instance John D Rockefeller created Standard oil which became a monopoly in the 20th century . Monopolies are notorious due to their ability to control politics and to destroy competition. Monopolies are actually bad for the economy because they prevent innovation in a certain sector. The history of monopolies has discovered that monopolies can actually control commodity prices. This is due to the fact that they are the sole provider of a certain goods or services. This effectively stops any kind of competition that can arise against these monopolies. In the United States Monopolies are effectively stopped through the US antitrust laws that where first enacted in 1911 in response to the steel, tobacco and oil monopolies of the time.
How to build a monopoly
Building a monopoly nowadays has become an increasingly difficult task. This is due to the many regulations that have been setup by governments around the world. These laws help prevent monopolies to some degree. However this should not stop you from going out and creating a business empire of your own. Although monopolies are illegal you can create one. You just need to grow your business large enough to control the sector that you are in. For instance if you develop and create pots you will need to first create the best pots. Then sell them at the most affordable price in order to destroy competition.
Amazon has been called out on its monopolistic tendencies. However Amazon is not a true monopoly because it doesn’t even own half of the e-commerce sector. In order for it to be a monopoly it should become the unchallenged champion of the e-commerce sector.