Formulation of Monopolies and Curb Unfair Practices of Large Corporations : Case Study
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Added on 2020-01-21
Formulation of Monopolies and Curb Unfair Practices of Large Corporations : Case Study
Added on 2020-01-21
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Can UK Governments effectively prevent theformulation of monopolies and curb unfair practices oflarge corporations- A Case Study of TFL.
LITERATURE REVIEWIntroductionThis chapter focuses on the conducting the literature review on the topic that governmentof UK mainly focuses on preventing the formulation of the monopolies and control the unfairpractices and activities of the large organization. The key purpose of conducting the literaturereview is to examine the pat studies that was conducted on the topic. Along with this, theknowledge also support in gaining and highlighting the gaps that are existing within the study. Theoretical frameworkThe concept of monopoly and its featureMonopoly is defined as a market situation in which there is only one seller of themerchandise or service in the market that mainly create an obstacle for the new entrants to enterinto the market. Under this type of market Monopolist Company can sell their services at any ofthe prices in the competitive environment. As per the view of Aithal (2015) if the companycharges the high prices for the commodity them it may reduce the demand of their services and ifthey lower the prices it results in increasing the demand of the services. Government may easilygrant the status of monopoly to their local representative body by allowing them permission torender effective services within the economy. According to Foster (2014) in the market structurepure monopoly and perfect competition are termed as the major cases of the market structure thatbenefit the organization to sustain its position through performing proper activities anddelivering services to the customers. Along with this, in monopoly structure there is only singleseller that deliver the quality services that have no close substitution. For instance, Transport forLondon this, is an agency framed by the government that deliver the services related withrecreating the rails and roads so that it may deliver easy and conveyance transportation to theresidents of the UK. There are certain features of monopoly it mainly include single seller andthe large number of buyers. As per the view of Allen (2013) the monopolist firm is the one thatdominate the market by delivering the unique services but the number of buyers towards theservices are very large in number. On the other hand, another feature of monopoly include thatthere is no close variation or substitution of the services as they are the leading organizationwithin the UK market that whose products and services are non-substitutable. As per the view ofMerhav (2013) firm working in the monopoly market mainly faces downwardly slanting demand
curve that clearly indicate that with lowering of the price company would deliver most of theservices and vice versa. Therefore, it is stated that within the monopoly market elasticity ofdemand factor is consider as significant for the organization (Poscher, 2016). LITERATURE REVIEWGovernment on monopolies From the view point of Aithal (2016) it is also stated that the sometime governmentalauthorities focuses on granting private monopolies to the company where they found that there isno such alternative as with the rise in monopoly the company ultimately results in enhancing thelevel of prices and limit of their industry. On the other hand, contrary to the above statementcompanies would replicate the services for attaining the competitive positioning in the market(Calabresi and Leibowitz, 2013). Although it is also termed as market situation in which there isonly one seller of the merchandise or service in the market that mainly create an obstacle for thenew entrants to enter into the market. Under this Company can advertise their services at any ofthe prices in the competitive environment. Along with this government obviate enabling privatemonopolies as with the constant up gradation in the technology and other factors. Along withthis, it has also assessed that with the developing world the government has changed theirperception towards the monopoly approach and driven the cost of public transport above themarket rates and price so that mire customer prefer the services. Therefore, as the resultgovernmental authorities is converting the the public transportation system into the competitivescheme (Rowley, 2013). Transportation sector in UKThe transportation sector of UK has been flourishing since 1952 with the trends setting inthe sale of cars and road transports. The combination of rails, roads, air and water all constituteto the modes of transport. With time and technology all of these developed to a great extent. Theshare of working has been changing with time as the freight of transportation has been evolving.People became smarter and developed ways that helped the growth of this sector (Pereira andRodrigues, 2014). Aviation, buses, trains, cruises, ships, airline that is the aeroplanes, etc. aresome of the mediums through which transportation is possible. The use of these modes is just notlimited to human beings or domestic activities but the country performs its logistics and mailtransportation also via them. Transport for London (TFL)
Transport for London(Tfl) is the sole regulating public sector organisation that takes careof the transportation mode of London. Life without transportation was unimaginable about 100or more years back. It came up as a boon to mankind (Brand, Anable and Tran, 2013). In case ofemergency to fulfil all sorts of personal and governmental operations transportation is aninseparable part. Any business is set up at such a location so that it can transport or send andcollect its resources and products to the markets.Railways are predominantly used for inbound travel while air and water ways arecollectively used for both inbound and outbound purposes. London has its own governing bodyfor the regulation and maintenance of the transportation facilities in the city. This has helped thegovernment to apply much better transportation methodologies and give the necessaryconvenience and comfort to people (Waisman, Guivarch and Lecocq, 2013). That would becommendable that UK has international rail transport. It connects itself with France and Belgiumand many others like Northern Ireland via highly advanced railways. Apart from these modes of transportation, the country has also initiated rapid transitsystem. This has been assigned currently to three of the cities in UK. This sort of transportationis underground that is through tunnels (Tezel and et. al., 201). These have helped in managinghuge traffic conditions and also one of the most affordable modes for the country people. Thecurrent ratio for the transportation modes in UK is that 83% is covered by car or taxi, 5% by bus10% by rails. While the air travelling fare was almost negligible. People always tend towards a comfortable and budget friendly travelling option. That isthe reason that UK has much more utilisation of road transport that too private cars and taxiswhile rails and others are used only for emergency or commercial purposes (Postance and et. al.,2016). TfL that is the transport for London was utilised for the urban section of the city while thesuburban areas were under the scrutiny of DfT that is Department for transport in London. Allthe activities like maintenance, repair, introduction of new modes all are conducted by the TfL inLondon. All the vehicles and the mediums are well connected through radio and internet so thatin case of any emergency the country can track the locomotive and have a better insight in thesituation (Sinha, Das and Bera, 2016). Such security features must be included in all thetransportation modes of the country and the world.EMPIRICAL REVIEW
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