monopoly examples in telecommunication industry

For example, imagine you want to buy a BMW car. What does this mean? Well, it simply means that even if the monopoly company decides to increase the prices of its goods or services, you will still buy their products. How does a company achieve a strong monopoly in the markets?įirstly, monopoly stocks have pricing power in their hands. Indian Energy Exchange (IEX) - Multi commodity exchange(MCX) - Coal India Monopoly Stocks in detail - Indian Railway Catering and Tourism Corporation Ltd - Hindustan Aeronautics Ltd.List of Monopoly stocks listed on the Indian stock exchanges.How does a company achieve a strong monopoly in the market?.But, today in this article we will list down all the monopoly stocks listed on the Indian stock exchanges. IRCTC was just one example of a monopoly stock listed on the Indian stock exchange. In addition, generally monopoly stocks also provide dividends to its investors. These companies have prolonged existence and have a history of generating revenues even in adverse economic conditions. Now, investing in a monopoly stock has major benefits. As IRCTC has no competitors, it is a monopoly company in the railway ticketing space. IRCTC is the only company which is allowed to sell railway tickets, water bottles and provide food services in the railway premises. One example of a company with moat is the Indian Railway Catering and Tourism Corporation Ltd. The company has a proven track record of generating huge revenues compared to its peers.New players will not be able to achieve the company’s scale and pricing.The company has a distinct cost advantage.If a company has a deeper market share or a moat in their industry, then it will be difficult for its competitors to survive and compete with the company having the moat.īut the question is…how will the company achieve this competitive edge over its peers? Well, by fulfilling this checklist.

Let’s consider the castle to be a company and the attackers to be its competitors. So, the wider the moat, the more protected the castle is. It is dug deep to prevent the attackers from entering the castle. Historically, a moat is a big valley dug all around a medieval castle which is filled with water. What is a moat? Let’s find out with this example. He refers to these stocks as companies with economic moats. Yes, he has made most of his wealth by investing in monopoly stocks.

But do you know who else loves monopoly stocks? Its non-other than Investing legend, Mr. Now we sure are big fans of monopoly stocks. Both the Indian Railways, and MCX are classic examples of monopoly businesses in India. But what about the commodity exchanges? There is The Multi Commodity Exchange of India (MCX) that deals in base metals or energy has monopoly in trading of energy and metals. How about stock exchanges? Well, the Bombay Stock Exchange is in a direct competition with the National Stock Exchange. You see, the Indian Railways enjoys a monopoly in the railway sector. Have you ever travelled in a train that was not run by the Indian Railways? My guess is No.

Monopoly examples in telecommunication industry