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.