Reliance is not going to be a dictator ever. Would have been possible
during the license Raj but not now. There are far too many options too
choose rom.
Are you referring to the cell phone service or to electricity(in certain
areas) as well?
to both. If reliance has a monopoly in certain areas its only a matter of
time
before someone walks right in. If there is money to be made, any
organization
with enough money and resources will jump in. This is not hard since we
have
opened our markets up.
And monopoly is very difficult to achieve! Even a cartel (with
reference to an alliance statement by Vihan) will stick only across the
supply chain and not amongst players in the same market.
Why not?
Because sooner or later the alliance will break with one or more of the
members
will try and make a quick profit. While a cartel looks good on paper its
very very
difficult to achieve in a capitalistic market.
This is so because having a cartel will mean controlling of prices, which
infact
will have a bearing on the profitability. If the prices are the same the
players will
try and reduce their costs by cheaper sourcing or better supply chain.
Sooner or later
profitability will boil back down to the prices with one or more members
selling at a
cheaper rate and making a quick profit or increasing their market share.
To counter
this the other members will break away too. Thats why :)
It's difficult even in a duopolistic situation! Pepsi- Coke.
Is it? From what i see either side took over or destroyed local competing
brands the world over. The result - only these two remain with no REAL
competition.
No monopolism. It officially remains a duopoly. Local entrepreneurs in
Jaipur and
other parts bottle their own wares in coke/pepsi bottles. you can find
such bottles
in hyderabad. So basically it has two players in the market and
numerous in the grey market.
Also if you notice their market has been eaten into by several smaller
players in
a different market, bottled water, fruit based drinks, even milk by
nestle. They face
competition from these players. Beautiful thing is as a consumer we have
so much of choice! :)
If they choose to
cut/increase production that DOES has a direct impact on the world
economy.
The cartel is very much alive, but they do not and really cannot control
prices.
So the question of them screwing you up by forming a monopoly does not
arise.
Besides, the earlier experience increased the resolve by other countries
to look
for alternate sources of energy. US has found oil wells (i think in
nevada - too lazy
to google) but has currently put it's extraction activities on
hold/minimal use.
Plus emerging oil corporations like ONGC, Reliance etc breaks OPECS
supposed monopoly.
Exactly. But rather then sitting for them to come up front one ought to
either start something or vocally oppose those who are potential threats.
The world will always have entreprenurs thankfully :). Vocally opposing
monopolies
is somehow not in line with my thinking. Start something .. ha now that is
what i totally
and wholeheartedly agree with!!
ps: apologies for the wrong decade!
Sachin G. Nambiar
Indian Pneumatic & Hydraulic Co.
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