I was very enlightened after reading Chris Mile’s article, 10 Corporations Control Almost Everything You Buy. Prior to this article, I did not realize how much market power these monopolies had. Growing up, I assumed that most of the brands ran independently and only sold the items they were known for. For example, I thought Nestle only sold hot chocolate and chocolate chips, but after analyzing the diagram, it seems that Nestle also owns L’Oreal which is known for their shampoo.

Many of the brands are competing against each other in the same market, yet they are owned by the same company. This is a clever marketing scheme, as numerous consumers are oblivious to the fact that regardless of what brand they buy, the company still makes profit.

When using porter’s five forces to analyze the competitive rivalry within an industry, there is a barrier to entry for new businesses who plan to enter the food industry. Additionally, there may be many substitutes within a market, but the substitute is most likely also owned by the monopoly. For example, when deciding between two fast-food places such as KFC or Pizza Hut, no matter what is chosen, Yum! makes money, thus increasing PepsiCo’s revenue.

Source:

http://www.policymic.com/articles/71255/10-corporations-control-almost-everything-you-buy-this-chart-shows-how?utm_source=takepart&utm_medium=social&utm_campaign=nov