Monopoly Against Indirect Competitors
ECON
MONOPOLY AGAINST INDIRECT COMPETITORS
A Research Paper on Monopolies: Ajinomoto VS. Maggi Magic Sarap
Submitted to Professor Noemi J. Salgado
ECON
MONOPOLY AGAINST INDIRECT COMPETITORS
A Research Paper on Monopolies: Ajinomoto VS. Maggi Magic Sarap
Chapter One
The Problem and Its Background
A. Introduction
People have encountered and are still dealing with Monopolized companies on a daily basis. From using electricity up to using additives on food preparation. Monopolies dominate the market by being the sole producer of their product, having control over price and lack of competition.
Rare is the chance of coming across with a Pure Monopoly nowadays. Although there are still some less pure forms of it such as government owned utilities as well as ‘near-monopolies’ in which a company has a bulk of sales in a specific market. The Monosodium Glutamate which is the signature product of Ajinomoto Co. Inc. nearly fit to the example of being a near-monopoly in our country, the Philippines; having the largest bulk of sales when it comes to additives.
Ajinomoto being the signature producer of Monosodium Glutamate, was first marketed in Japan in 1909, having been discovered and patented by Kikunae Ikeda. He found that the most important compound within seaweed broth for common use was actually a glutamate salt, which he identified with the taste umami, a word meaning 'pleasant taste' or 'savoriness'. As the simplest such salt for human consumption, the popularity of MSG helped the company rapidly expand to other countries, having branches in USA, China and other countries. With East Asia becoming a staple consumer of glutamate in its various forms at a rather quick pace, Philippines had Ajinomoto as a Monopoly producing the main additive households use on their cuisine.
Although Ajinomoto had been the sole producer of additives used by Pinoys without more ado when it transpired, it didn’t thoroughly gain the repute of being a Pure Monopoly
MONOPOLY AGAINST INDIRECT COMPETITORS
A Research Paper on Monopolies: Ajinomoto VS. Maggi Magic Sarap
Submitted to Professor Noemi J. Salgado
ECON
MONOPOLY AGAINST INDIRECT COMPETITORS
A Research Paper on Monopolies: Ajinomoto VS. Maggi Magic Sarap
Chapter One
The Problem and Its Background
A. Introduction
People have encountered and are still dealing with Monopolized companies on a daily basis. From using electricity up to using additives on food preparation. Monopolies dominate the market by being the sole producer of their product, having control over price and lack of competition.
Rare is the chance of coming across with a Pure Monopoly nowadays. Although there are still some less pure forms of it such as government owned utilities as well as ‘near-monopolies’ in which a company has a bulk of sales in a specific market. The Monosodium Glutamate which is the signature product of Ajinomoto Co. Inc. nearly fit to the example of being a near-monopoly in our country, the Philippines; having the largest bulk of sales when it comes to additives.
Ajinomoto being the signature producer of Monosodium Glutamate, was first marketed in Japan in 1909, having been discovered and patented by Kikunae Ikeda. He found that the most important compound within seaweed broth for common use was actually a glutamate salt, which he identified with the taste umami, a word meaning 'pleasant taste' or 'savoriness'. As the simplest such salt for human consumption, the popularity of MSG helped the company rapidly expand to other countries, having branches in USA, China and other countries. With East Asia becoming a staple consumer of glutamate in its various forms at a rather quick pace, Philippines had Ajinomoto as a Monopoly producing the main additive households use on their cuisine.
Although Ajinomoto had been the sole producer of additives used by Pinoys without more ado when it transpired, it didn’t thoroughly gain the repute of being a Pure Monopoly