STEP 3: Does the undertaking have dominance in the market?

5 important questions on STEP 3: Does the undertaking have dominance in the market?

How long must a company be in a dominant position for it to be considered dominant? Explain how United Brands were in a dominant position for a long period of time?

- To be dominant, a company must have held a strong position for an extended period of time.
- For a long time, United Brands was the dominant supplier of bananas in Europe.

If the undertaking has patent rights over a specific design - intellectual Property (exclude competitors from using this design/invention which might be central to that relevant market) does that act as a barrier to entry?

Patent rights over a specific design will make it difficult for competitors to enter the market which acts as a barrier to entry.

How did Hugin create legal barriers for other cash register companies?

It was the ONLY producer of Hugin spare parts which meant that parts could not be bought from other competing cash register companies
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Can dominance take the form of more than one company Italian Glass?

No, a dominant position can also be joint or collective dominance. In Italian Glass - several companies operate on the market as a unified economic entity.

Explain what part of the market must the undertaking be dominant in and whether this need to be just geographically? Containers (Holyhead)

- Whether the undertaking is dominant 'within the internal market or a substantial part of it'
- Not just geographically but can be an economically significant part 

- Containers (Holyhead) - port of Holyhead was held to be a substantial part of the internal market due to its economic significance as it was a major gateway between Britain and Ireland

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo