There are abounding number of industries viewed to have had monopolies throughout their respective histories like the technology, energy, and consumer product industry. They are viewed as monopolies, because not only does one of many company within the industry have a bigger share of the market, but the company also has the power to adjust the prices on many of their commodity. A monopoly can happen in any industry, even in the confectionary industry. Mars inc. and Mondelez int. have powerful histories and an important place in the confectionary industry. The question is, is it enough to consider them virtual monopolies? Though these companies are not even close to possessing 50% or more of the confectionary industry market, they still can be looked as companies that have created a virtual monopoly.
The companies Mars and Mondelez are the two leading confectionary companies in the confectionary industry market and seem to have the power to be called virtual monopoly, because both are enterprises supplying more than one particular confectionary commodity. Plus, the lack of a substitute goods equivalent to the commodities supplied by Mars and Mondelez, gives these companies power over the cost and supply of the goods. Which if they proceed with taking control of the confectionary market, that means these two companies will approach the title of a monopoly, defined by Robert Feenstra:
(“A monopoly exists when an specific person or enterprise is the only supplier of a particular commodity.Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. The verb “monopolize” refer to the process by which a company gains the ability to raise prices or exclude competitor. (Robert C., 2014)”)
However, these two companies can never become a full-fledged monopoly due to the wide spread of power in the confectionary industry market, but Mars and Mondelez can still be defined as virtual monopoly.Which means they aren't a actual monopoly that has all the power in their industry , but the power Mars and Mondelez does have over the market and its prices is a lot stronger than the rest of the companies in the confectionery industry market.
These two companies have succeeded in becoming virtual monopolies because they both have gradually taken out their competition throughout history and in doing so became the leaders of the confectionary industry.
The two companies; Mars and Mondelez both have acquired a lot of other confectionary business as well as brands to become what they are today .Mars Inc. breakthrough happened when they introduced their M&M plain chocolates, launched in 1941. Then subsequently Mars Inc. proceed to capitalize on the success of the brand to build their name. Mars then inflated from that day on, Mars hasn’t only produced and acquired a great deal of other confectionery brands like ;DOVE®, MILKY WAY®, M&M'S®, SNICKERS®, MARS®, ROYAL CANIN®, PEDIGREE®, TWIX®,...