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MONOPOLY
Presented by :-
Dhiren Haria (A017),
Vishal Shah (A044),
Jay Sangani (A041),
Hiren More (A029),
Priyank Shah (A043),
Haresh !ri"e#i (A0$0)%
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&on'en's
Introduction (Meaning /Features Characteristics).
Types of Monopoly.
A Monopolys Output and Price Decision.
Example of Monopoly.
Advantaes ! Disadvantaes.
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n'ro#*'ion
DefnitionA monopoly is a r 'ha' -ro#*es a goo# orser"i*e .or /hi*h no *lose ss'i''e eis's an#
'ha' is -ro'e*'e# y a arrier 'ha' -re"en'so'her rs .ro selling 'ha' goo# or ser"i*e% nono-oly, 'he r is 'he in#s'ry%
Market PowerMarke' -o/er is 'he aili'y 'o inen*e 'hearke', an# in -ar'i*lar on 'he arke' -ri*e,y inen*ing 'he 'o'al an'i'y oere# .orsale%
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Key Features No close substitute
. a goo# has a *lose ss'i''e, e"en 'hogh only one r-ro#*es i', 'ha' r ee*'i"ely .a*es *o-e'i'ion .ro'he -ro#*ers o. ss'i''es%
!arriers to "ntry
5egal or na'ral *ons'rain's 'ha' -ro'e*' a r .ro
-o'en'ial *o-e'i'ors are *alle# arriers 'o en'ry%
Le#al !arriers to "ntry
A legal ono-oly is a arke' in /hi*h *o-e'i'ion an#en'ry are res'ri*'e# y 'he gran'ing o. a -li* .ran*hise,
go"ernen' li*ense, -a'en' or *o-yrigh'%
Natural !arriers to "ntry
6a'ral arriers 'o en'ry *rea'e a na'ral ono-oly% Anin#s'ry in /hi*h e*onoies o. s*ale enale one r 'o
s--ly 'he en'ire arke' a' 'he lo/es' -ossile *os'%
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!y-es o. Mono-oly
Per.e*' Mono-oly
Per.e*' ono-oly is aasol'e ono-oly%
6o .ear o. *o-e'i'ion
6o ss'i''e
's a "ery rare 'y-e o.ono-oly%
-er.e*' Mono-oly
-er.e*' ono-oly isrela'i"e or si-le ono-oly%
!here is a .ear o. *o-e'i'ion'o soe e'en'
May ha"e reo'e ss'i''es
8a-les Vo#a.one ha"ing*o-e'i'ion /i'h e#lan#line e :S65
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!y-es o. Mono-oly
Pri"a'e Mono-oly
Pro#*'ion o/ne# y-ri"a'e in#i"i#al or-ri"a'e organi;a'ion%
Pro' orien'e#%
Manage# an# *on'rolle# yan in#i"i#al%
8a-le
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!y-es o. Mono-oly
6a'ral Mono-oly
A 'y-e o. ono-oly 'ha' eis's as a resl' o. 'he high e# ors'ar'>- *os's o. o-era'ing a siness in a -ar'i*lar in#s'ryor as a resl' o. na'ral a#"an'ages like goo# lo*a'ion ,
an#an' na'ral resor*es e'*%
' o**rs in a in#s'ry /here &a-i'al *os' is "ery high /hi*ha*'s as a arrier .or en'ry in 'he arke'%
8*onoi*ally sensile 'o ha"e go"ernen's o.'en regla'e'hose, ensring 'ha' *onsers ge' a .air #eal
8a-les Pli* 'ili'ies s*h as /a'er ser"i*es , ele*'ri*i'ye'*% Also ?l. *on'ries ha"ing ono-oly in *r#e oil%
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!y-es o. Mono-oly
?eogra-hi* Mono-oly
Marke's 'ha' en@oy ono-oly #e 'ogeogra-hi*al on#aries
nly one *o-any 'ha' oers a -ar'i*lar goo# orser"i*e in an area
8a-le 6ike is 'he only shoe sol# in Den"er,
e*ase 'he on'ains aron# -re"en' o'hershoe *o-anies 'o shi- in an'i'ies o. shoes,/hile 6ike @s' ha--ens 'o ha"e a .a*'ory inDen"er
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!y-es o. Mono-oly
Si-le Mono-oly
Si-le
ono-oly r*harges ani.or -ri*e orsingle -ri*e 'o all'he *s'oers%
8a-les 5o*al&ale 6e'/ork
Dis*riina'ingMono-oly
S*h a ono-olyr *harges#ieren' -ri*e 'o#ieren' *s'oers.or 'he sae
-ro#*'%
8a-les MHADA
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!y-es o. Mono-oly
5egal Mono-oly
=hen ono-oly eis's on a**on' o.
'ra#e arks, -a'en's, *o-y righ's,s'a''ory regla'ion o. go"ernen' e'*%,i' is *alle# legal ono-oly%
8a-les Msi* in#s'ry
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!y-es o. Mono-oly
!e*hnologi*al Mono-oly
' eerges as a resl' o. e*onoies o.
large s*ale -ro#*'ion, se o. *a-i'algoo#s, ne/ -ro#*'ion e'ho#s, e'*%
8a-les ?oogle (Sear*h engine),Mi*roso.' =in#o/s (S)
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!y-es o. Mono-oly
Join' Mono-oly
A ner o. siness rs a*ire
ono-oly -osi'ion 'hroghaalgaa'ion, *ar'els, syn#i*a'es, e'*, i'e*oes @oin' ono-oly%
8a-le A*'ally, -i;;a aking r an#
rger aking r are *o-e'i'ors o.ea*h o'her in .as' .oo# in#s'ry% :' /hen'hey *oine 'heir siness, 'ha' lea#s'o re#*'ion in *o-e'i'ion% So 'hey *anen@oy ono-oly -o/er in arke'%
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Maximizing Economic Proft:
!he 'o'al &os' E !o'al
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,M& e*ess M< y G 4, so -ro' #e*reases y 'ha' aon'% =hen M As o. 2007, < /as 'he se*on# os' -ro'ale *o-any aongs' 'he-li* se*'or *o-anies as o. 2007 /i'h -ro's o.
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Example o Monopoly Indian Railway
Frei#5t 8er2ices> Ireigh' ser"i*es a**on's .or ore 'han 70 o. re"enes an# a@ori'y
-ro's .or n#ian < i-leen'e# i#eas like re"ising .reigh' ra'es, in*reasing *a-a*i'y o..reigh' *on'ainers, #e*reasing loa#ingNnloa#ing 'ie o. .reigh' *on'ainers,e'*%
Key strate#ies implemented to minimi;e costs
!ownizingO
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Example o Monopoly Indian Railway
Pricin# Discrimination:
%loc& Pricing
> Pri*es .or single 'i*ke'> Pri*es .or on'hly -ass> Pri*es .or ar'erly -ass> :lk :ooking #is*on' .or seasonal 'rains #ring ser "a*a'ion, Di/ali,e'*
%aed on Conumer group- A& Iirs' *lass, A& Se*on# *lass, A& !hir# *lass, Slee-er, Sea'ing%> &on*ession 'o S'#en's, Dis*on's 'o senior *i'i;ens
Pricing 'aed on #ime> !a'kal reser"a'ion
=5y >1 is not pri2ati;ed> ?o"ernen' kee-s -assenger .ares *on'rolle#%> Pri"a'e -layers igh' in*rease .ares 'o genera'e -ro's%
Low 7ost $irlines?1oad transport> < has een ale 'o en@oy goo# -ro's n'il re*en'ly ' lan*h o. lo/ *os'airlines N 'r*ks has soe/ha' ae*'e# .reigh' re"enes%> &ons'an'ly 'rying 'o inno"a'e an# *oe - /i'h ne/ s'ra'egies so as 'okee 'heir ro's ro/in %
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A#"an'ages an#Disa#"an'ages
$d2anta#es 6o risk o. o"er -ro#*'ion
!here is enogh *a-i'al .or resear*h
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A#"an'ages an#Disa#"an'ages
Disad2anta#es8-loi'a'ion o. *onsers
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@5ank You
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