Semi Conductors Essay Example | Topics and Well Written Essays - 750 words

Semi Conductors - Essay congressmanIf a firm manufactures a undoubtedly distinguished good, where the customers associates the good with the stake name, it will become very difficult for the new firm to come into the market and take the customers away from the old firm because here the problem is non to produce at a low cost but to produce a signifi croupetly attractive product so as to distract the loyal customers from a familiar brand. Lower Cost for an Established FirmA monopoly is probable to have maintained expert production and marketing abilities. It is more likely to be certain of the most proficient methods and the most trustworthy and cheapest providers. It is likely to encompass access to cheaper funding. It is therefore working at lower cost curve. New firms would consequently keep an eye on it difficult to compete and would be likely to lose any price war. Ownership of, or subordination over, Key Factors of ProductionIf a firm is the only owner of a particular ra w material or good then it can deny supply of that particular good to its competent firm.Ownership of, or Control over, Whole Sale or Retail OutletsIn the same way if the firms owns and controls the outlets through which the good may be sold. It can stop it rivals from gaining access to customers.This creates a hindrance to entry as it protects the existing firms by patents on necessary processes, by copy rights and also by different types licensing( for example a license which only allows one firm to operate in a particular region) and tariffs and also by other trade restrictions. Like many sportfishing companies have got license to fish in a particular region and are also given a particular quota.Mergers and takeoversThe monopolist firms takeovers new firms by putting bid on them. This increases discouragement for new firms.Aggressive tacticsA monopolist who is business for quite a long time can sustain losses for a long time but a new entrant cannot and hence it would blow up a price cutting war, start big advertising campaigns and introduce new brands and drive the new entrants out. IntimidationIn order to drive the new entrants out the existing firm may way out to different forms of harassment and which may be legal or illegal.Semiconductor Rivalry in USA A Current ExampleHere we can cite the example of USA where first and second generation chip organizations like Fairchild, General Electric and RCA paved a room for the third generation companies as the