Category – Business
Reading time – Two minutes
Duopoly in business means that in every business sector; there are two dominant companies who share majority of the revenues.
One is leader with 60-70% marketshare.
Second is a company with 25-30% share.
All other players fight for remaining 20-25% share.
Internet search market has Google and Baidu.
Social media has Facebook and Twitter.
Software App market has Apple and Google.
Retail has Amazon and flipkart.
MasterCard and Visa.
Boeing and Airbus.
Coke and Pepsi.
This pattern seems to emerge in every market.
This is due to winner take it all mechanism that works to slowly focus earnings in one or two bigger pots.
This however may be counterproductive for economy as a whole and for average customer. With time big companies get extremely strong and excercise great control over their earning margins and bargaining power of customers falls.
Here policy makers need to step in to stop unfair practices that sprout as power of giant the companies rise.