Read further to know more.įurther, in the banking sector, four significant organizations – NAB, ANZ, Commonwealth, and Westpac – have significant control over the entire banking and finance industry. This type of analysis is the outcome of our assignment help experts this article has been articulated keeping in mind the monopoly analysis in Australia, as it is a very controversial topic in Australia due to significant control of few companies in the sector or other. From the below-given graph, it has been analyzed that major supermarkets of Australia have significant control over a considerable fraction of the market segment. With the help of this graph, four different supermarket brands – Coles, Woolworths, IGA, and Aldi – have over 90 percent of the entire market space. The below-given graph provides an illustration of overall competition in different supermarkets around the world. The remaining fraction comprises of all other supermarket industry that operates in Australian domain.
It has been analyzed that over 80% of the market segment is captured by dominant supermarkets – Woolworths, Coles, and Wesfarmers (Kollmorgen, 2016).
Such firms have grown considerably large in the context of their respective operations and overall network that they control a substantial market space. Woolworths, Coles, and Wesfarmers have obtained a significant fraction of the entire Australian supermarket sector. As per the monopolistic scenario of Australia, a considerable monopoly exists in the supermarket industry and banking sector. In a monopolistic environment, there are a number of potential sources that allow various organizations to generate significant control over the entire market space. Monopolistic Market Structure in Australia : Every additional customer would make the overall cost fall cheaper. However, the firms have grown significantly large in size that it has lower costs per potential customer. Primary responsibility for managing such aspects is possessed by the Australian Competition and Consumer Commission. Different monopolistic organizations in Australia have a downward sloping demand curve in contrast to the perfectly elastic curve of a competitive market segment.įirms in such a market have limited competition and can mark up their respective prices as per their preference. To better understand the monopolistic market structure of Australia, the most potential distinction could be evaluated in the form of a demand curve. There are a number of similarities between the two types of markets, such as – similar cost functions, minimization of costs and maximization of profits, the similarity between shutdown decisions, etc. The competitive and monopolistic market tends to mark the extreme in terms of different attributes of market structure. Monopolistic organizations also possess important information that is not generally known to other organizations, which gives them a significant edge (Liu & Yang, 2007). Such factors much restrict other potential organizations from gaining entry into the market segment. In a monopolistic market space, a wide range of factors such as ownership of resources, government license, patient and copyright, and high starting cost tend to make a singular entity as the single seller of products and goods. However, in a monopolistic environment, an organization does not face any significant competition because it is the only producer and seller of the products with no close substitutes. Monopolies tend to have an edge and unfair advantage over different rival organizations mainly because of the fact that they emerge as the sole provider of specific products and services. The detailed discussion will be provided on various elements that leads to monopoly of these companies in Australian market. The major reason of this monopoly is that there is high entry barrier in these sectors and it is hard to achieve economies of scale. These companies are the market price makers in their respective sector. The other feature of monopoly presented that most of these companies are in the race to maximize their share and profits. Woolworths and Coles represented 80 per cent of the market in supermarkets industry whereas in banking sector ANZ, NAB and Commonwealth are the major banks which possess monopoly. To understand it, market of Australia has analyzed and it is observed that two sectors supermarkets and banking in Australia possess monopoly. monopoly which means the control of a single firm over the industry or market. The present report will shed light on an important term used in economy of every country i.e.
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