Crobih writes:
"Monopoly... you may be right about its meaning in a dictionary. the meaning of the Monopoly I mentioned is the one I wrote. I do not know exact word for it, so please help me out with it."
I think you are confusing "Monopoly" with "Dominance". It is true that if one is first into a new market, or has more money than the established players already in a market, one has an INITIAL advantage over others. It is not true (as has been demonstrated over and over again) that this initial advantage is a PERMANENT one. At least it isn't true under pure Capitalism, since in a Capitalist society the only way a given company can maintain its dominance is through excellence.
Under our current economic system (which is NOT pure Capitalism), however, the first one into a market often DOES hold an advantage, because of government interference. There are endless examples of shitty companies that couldn't deliver quality by themselves being kept afloat through government interference. Just one of many examples: the big Chrysler bailout about twenty years ago. Under pure Capitalism, Chrysler would have vanished in the 80s.
"But you have to understand that IBM was established in a very much running industry where you can have a possibility to enter with a NEW product. It is same with sony and beta format and with many other examples."
Are you saying that my examples only hold true for NEW inventions? Not so. I used MacDonald's as an example. Hamburger places existed long before MacDonald's did. I also used WalMart as an example. Department stores existed long before WalMart did. Neither of these companies introduced ANYTHING new. Neither was the first into their particular market. Neither of them had ANY money at all to enter the battle against older, richer, well-established companies with brand-recognition and big advertising budgets. Yet now each one is the leader in its field. And each did so with no help from government, either economic help (such as subsidies or special tax breaks) or legislative help (such as restriction of their competitors).
"I live in a small country with no money for investition. In last time big companies made malls..."
Malls are NOT built by MacDonald's or by WalMarts. They are built by real-estate developers who rent their spaces to ANYONE who wants to pay the higher rent that malls charge.
"...and those malls destroyed all those little shops wich where here before."
The owners of those little shops had the right to move their businesses from their old locations into a new location in a mall, if they so chose. I don't know what it's like in Croatia, but that happens all the time in North America.
"They are strong enough that they can keep low profits for extended period of time..."
So what is the problem? Everyone always seems to be screaming at businessmen all the time for being so profit-oriented. Seems to me you would be DELIGHTED to see a businessman accept LESS profit. If a business decides to accept lower profits by lowering prices, then the sacred consumers are getting a good deal, right? If a poor family can save enough on its clothing bill because they can now buy their clothes for 70% at WalMart instead of 100% at "Mom and Pop's Clothing Shop", then that family now has extra money it can spend on a computer to help the kids get ahead in school, right? Or on a new car to replace their twenty year old Yugo. And there is not just one poor family, there are THOUSANDS of poor families that shop at WalMart. So thousands of people benefit by the new WalMart store in the new mall, against one family (Mom and Pop, who are BUSINESSMEN also, don't forget) who have a tough business decision to make.
You used the phrase "extended period of time", but in reality, that period of time is unlimited. WalMart will ALWAYS have low prices, because they know that as soon as they lift their prices too much, a hundred more "Mom and Pop" businesses will jump in. All the anti-Capitalists use the same argument: "The prices will only stay low until WalMart (or whoever) drives its competitors out of business. Then they will jack up the prices and rob us blind because there will be no competition left!" Well, guess what? That never happens. I challenge you or anyone else to provide me with a single example of that prediction coming true. Take all the time you want.
"Thier only interest is maximisation of profit."
Of course. Mom and Pop didn't go to all the trouble of running their own business because they were interested in MINIMIZING their profit, either.
"Now there are 3 or 4 centers for shoping here. 3 or 4... they can easily find thier interests and join together to take as much money form the poor people as they possibly can."
Well, I have already shown that poor people benefit from a WalMart more than rich people do. WalMart certainly does not "take as much from the poor people as they possibly can". WalMart takes less from Joe and Sally for a kid's dress than Mom and Pop's Clothing Shop ever did. Besides, no one is forcing the poor people to shop at the malls. Poor people shop at malls because they are convenient. No need to drive all over the city to pick up a dozen different items... they can save time and transportation money by making one trip to the mall instead. If the poor people WANT to continue shopping at individual stores that exist outside malls, they can. And don't tell me that the ONLY stores that exist in your town are in one of 3 or 4 malls. That is an exaggeration.
"That is the problem of monopoly I am talking about. there is many more examples, but this one is pretty good IMO."
Well, first of all, it is not monopoly that you are describing when you talk about shopping malls. It is centralization. Secondly, you haven't even demonstrated that centralization is harmful to "poor people". So I can't agree that it is a good example of anything.
"Next, all those things even IT are going to establishment, real establishment. IBM had bad politics in their past and that is their main problem. But what will happen when there is not going to be big space for better? ( I assume that IT IS POSSIBLE) I assume the best will form some sort of monopoly and move out every other. That is concern I am talking about."
I'm sorry, Crobih. I respect your ability to communicate in many languages (I only know three, and can write well only in one, English... so I am much worse than you), but I honestly don't understand what you are trying to say here. Can you put it into different words?
"Good managment plus those two things guarantee MONOPOLY"
No, it does NOT guarantee monopoly, it doesn't even guarantee dominance. I have given concrete examples to support my points. Can you give me even ONE example to support yours?
pinky
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