Question
Large businesses have big budgets for marketing and promotion, and as a result, people gravitate
towards buying their products.
What problems does this cause?
What are the possible solutions?
Answer
It is quite common to hear people complaining nowadays about giant corporations such as Amazon
because they have vast resources and can create virtual monopolies. This essay will look at the
problems this causes and suggest two possible solutions.
The problem with large companies dominating the market is that they push out competition. In the
beginning, this seems beneficial for customers because they are able to buy a large range of
products at a low price, but later they only have one option for their purchases and this provides
that company with undue power and influence. Over time, these huge companies squeeze out their
competitors, causing other organisations to go bankrupt and leave their employees without jobs.
This can devastate local areas by increasing unemployment and reducing services. Altogether, it has
a massively negative effect on society.
To stop this from happening, there are really only two options. The first is a series of anti-monopoly
laws established by the government. In recent decades, both Microsoft and Google have been
stopped from gaining too much power by the use of these laws. However, in many countries it is
difficult to enforce such laws due to corruption, and so the other alternative is encouraging people
to shop locally. At the moment, this is difficult because people generally want to shop at the place
with the biggest selection and lowest prices, but they need to understand that this comes at a
serious cost. Saving money now can have a major impact later.
In conclusion, when companies become too powerful, they can squeeze out the competition and
gain undue influence. This has a really negative impact upon society, and so there are things the
government and people can do to stop this happening.
