The term monopoly refers to the market in which a seller is selling the product with no competition. The seller is uniquely selling the product and becomes a sole seller. There is not a single substitute of the seller in the market of that product. The factors such as license of the government, resources’ ownership, high cost of the product. All these factors make the entry of other sellers restricted. The controller of the market is the single seller. The word monopoly can be used when the market is fully or nearly owned by a single person, group, or organization. The biggest disadvantage to the rival in the monopoly is that the main company has emerged as the sole company for selling goods.
Concept of Monopoly companies in Australia
There are two kinds of markets that can be attributed in this sense. The first one is competitive and the next one is monopolistic. The only difference between the first and the second market is that the monopolistic market has a downward slope of the demand curve while the competitive market has a perfect elastic curve of demand. Counting on the similarities between these two types of markets. There are numerous similarities between the two, the cost functions are very similar, minimization and maximizing profits. There is the similarity of shutting down the market at the same time in both of the types of market.
Organizations in the markets that are monopolized have less competition for any kind of accounting and MYOB assignment help services. and thus the organization can fix the price of the item they are producing according to them. In the country, Australia this market is managed by the Australian Competition and Consumer Commission’.
Monopolistic Market Structure in Australia by Urgent homework
The structure of the monopoly markets in Australia is well defined. There are certain sectors where monopoly is high while other markets have a low percentage in terms of monopoly. The markets have fair competition in many products. In the field of supermarkets, there is a monopoly of the company. In the field of supermarkets and banks, the monopoly can be seen in the country. The names like Woolworth’s, Wesfarmers, and Coles have gained their name in the markets of Australia. These companies are dominant is considerably high.
In the field of a supermarket, the companies like Woolworths, IGA, Aldi, and Coles have monopolized over the continent. With a population of approximately 25 million. The maximum number of shares in the supermarket is of the Woolworths, making it an organization that has correctly and significantly a monopoly. The three firms or the companies that have ruled over the supermarkets of Australia are, Woolworths, Coles, and Wesfarmers. It has been calculated that these organizations form 80 percent of the market of Australia. The remaining 20 percent is owned by companies such as IGA, ALDI, etc. Among the three Woolworth is the prominent organization that has captured most of the supermarket. The report says that this organization has captured 1/3rd of the total market of the country. The company was founded in the year of 1924. The company has also formed a duopoly with another prominent organization named the Coles. A per the number of stores is counted, there are approximate 1000+ stores of this company in the country. The company has a remarkable revenue of 39.568 billion, which is a massive and giant amount in itself. Another name which is prominent in this sector is Coles. This organization is 105 years old, way older than the Woolworths. The products produced by the company are of high quality. There are approximately 807 stores that have ownership of Coles. The revenue of this organization is approximately 39 billion in the year 2018. Considering the third biggest company, Wesfarmers. This company is selling products such as fertilizers, coal mining, chemicals in the country. Being the sole provider of these elements in the country, Wesfarmers has emerged as a prominent company in the country. This company has expanded its channels not only in Australia but in other companies such as Ireland, UK, India, and New Zealand. The reason for emerging as a monopoly company is an extensive share in the marketplace.
Another sector which is banking is also taken by few organizations. Like that of the NAB, ANZ, Westpac, and Commonwealth. These four companies have significant rules over the finance and banking sector. The major profitable area of these banking firms is mutual funds. The reason for monopoly over the sector is high capitalization, high amount of assets, and security which they are providing to the customers. There is a considerate amount of the increase in these companies due to various reasons. Many powers are being granted to these organizations because of their monopoly homework help over markets. Some of the reasons are:
- Legal barriers: Many laws are made by these organizations to safeguard their interest and to make profits. These laws have been gracefully accepted by the country and fellowmen.
- No substitute: Being the monopolized company, these companies enjoy being a superior and only company. They decide their pattern of working to their needs and interests. The policies that these organizations follow are more favourable to them.
- Technological advancement: These companies usually have superiority and development in technology. Through the advancement in technology, these organizations offer numerous advantages and benefits to the people.
- Deliberate actions: Usually it is seen that such monopolized companies have deliberate actions. The possible reason is their solo approach and command in the market. Another reason is that their policies are made in such a way that it earns profit to them.
- A requirement of the Capitals: One of the major causes of power to such companies is the fulfilment of the capital. Considering the human capital, they have an abundance of human resources, because of their uniqueness in the market. Other capitals and sources are also fulfilled easily because of their no competition in the market.
National Bank of Australia (NAB) is a prominent organization in the banking sector. As per the capitalization is considered the bank rank is 21st. The rank of the bank is 50th among the total assets is considered in the world. The number of customers in the bank is approximately around 12.7 million. The branches in the country Australia of NAB is around 1590, which is again a big number. Another organization in banking in Australia is Westpac. The headquarters of the bank is in Sydney. The total number of branches is around 1205 in the country. Westpac has gained the trust of many people, there are 14 million customers of the bank. This banking service is 200 years old. One of the prominent is the Australian and New Zealand (ANZ) bank. With the merging of the services of two countries, this bank becomes a multinational bank. The bank has a second position if the assets are considered. Also, it is the third-largest bank.
CHARACTERISTICS FEATURES OF THE MONOPOLIES IN AUSTRALIA.
There are many features of the Australian monopolized companies. Some of the features are mentioned below.
In the sector of supermarkets, there is a lack of global competition. The sole rule of few companies makes it a significantly monopolized sector. The ultimate aim of such companies is to make profits and expand their branches not only in the country but outside the country too. A particular organization can fix the price of the item according to their need and the way that can yield the maximum profit.
Some examples of such organizations are Coles and Woolworths that decide the price of an item according to their profits. It is seen that these organizations are profit-making and setting a benchmark for the rest of the organizations.
Moreover, in the banking sector, the chances of coming and settling are very low. As the trust of customers is already developed by the dominated organization. The scope of accepting a new banking service by the people is a bit low.
SUMMARY for MONOPOLY COMPANIES IN AUSTRALIA
The above-mentioned report is regarding the monopoly companies that have been a great part of the country Australia. The companies have gained their name and set a benchmark in sectors of supermarkets and banking and anyone can use our APA referencing generator for any kind of citations. The monopolistic market has a downward slope of demand. There is not a single substitute of the seller in the market of that product. The factors such as license of the government, resources’ ownership, high cost of the product. All these factors make the entry of other sellers restricted. The controller of the market is the single seller. The word monopoly can be used when the market is fully or nearly owned by a single person, group, or organization. In the field of supermarkets, there is a monopoly of the company. In the field of supermarkets and banks, the monopoly can be seen in the country. The names like Woolworth’s, Wesfarmers, and Coles have gained their name in the markets of Australia. These companies are dominant is considerably high. In the field of a supermarket, the companies like Woolworths, IGA, Aldi, and Coles have monopolized over the continent. With a population of approximately 25 million. The maximum number of shares in the supermarket is of the Woolworths, making it an organization that has correctly and significantly a monopoly. The three firms or the companies that have ruled over the supermarkets of Australia are, Woolworths, Coles, and Wesfarmers. It has been calculated that these organizations form 80 percent of the market of Australia.
