In procurement, a monopoly occurs when only one supplier supplies a particular category. Monopolies can occur due to barriers to entry such as patents, or through mergers or government licence. Monopolists have some or all of the following characteristics: they may maximise profit, set the price of the category in the marketplace and restrict the supply of the product or service. Monopolies are a form of market structure, and procurement strategies need to address the monopolist’s behaviour and the fundamental lack of competition. Market regulators may resist potential mergers and acquisitions that may create market dominance, and in some circumstances the planned merger may not be allowed. See also Market Structure.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
