What is the captured market?
captured markets are any types of market situation where consumers have limited possibilities in terms of purchase of goods and services. There are many different reasons why a prison market can develop, including only a small number of companies producing goods and services, a market controlled by a monopoly, or even some aspects of the product that is so unique that it can only be obtained from one or two suppliers. Although this is not necessarily a negative situation, being a prisoner audience on the prisoner market includes several risks that are not on more open and versatile types of markets.
One of the more common examples of capture market is related to a situation in which there is a single provider that meets the needs of all consumers on the market. For example, if there is only one electrical service provider in a given area, then there is a monopoly and consumers have no choice but to remain a customer. Similarly, if it is determinedThe goods and services are only available from the state owned and operated by institutions, consumers do not have a real choice if they want to use the products sold by this institution.
A similar type of prisoner market is known as oligopol. In this scenario, a small number of companies are dominated on the market and the room for the competition of other companies is significantly limited. This means that this small group of companies more or less control prices and supplies, while consumers have few alternatives to secure products from anyone other than this group of businesses.
Sometimes the captive market is created by a manufacturer that builds goods so that consumers still have to return for spare parts that are unique for these products. For example, if a textile company buys machines for use in production and tissue of these machines are only manufactured by the same company that produced machines, it is not possible to buy them fromanyone else. The final result is a situation where the customer must agree to pay any price the manufacturer charges or risk losing the entire investment in the machinery.
In some cases, the captured market is created when a parent company requires all its satellite companies to buy products from their parents. This means that if the teleconference office is owned by a company that produces conference bridges, the Bureau has no real choice than to buy bridging equipment from the parent, even if bridges created by other manufacturers were more cost -effective. This approach helps to maintain the lower limit of parents healthy, although perhaps at the expense of the satellite company profitability.