Featured Post

How Elon Musk Built His Empire - [Infographic]

Image
This graphic was created by information designer Anna Vital, read herfull article here.
Step by Step: How Elon Musk Built His Empire (by Anna Vital)“The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace. They will escape competition altogether, because their businesses will be unique.”– Peter Thiel in “Zero to One” In the bookZero to One, prominent entrepreneur and investor Peter Thiel shares his vision on what it takes to create an extraordinary company. Specifically, Thiel believes that instead of making incremental upgrades to an existing product or service, a company must aim to do something completely new to avoid ruthless competition. While Thiel has worked with many impressive people over the years, Thiel points to Elon Musk as a particularlysuccessful memberof the Paypal Mafia that has gone “zero to one” many times. THE RÉSUMÉAt only the…

Philippine Business Monopolies

Just read this article on Inquirer.net about Globe complaining that the PLDT and Digitel merger would create a monopoly.
PLDT-LogoGlobe-Logo
PLDT chair Manuel V. Pangilinan on Tuesday hit out at Globe, accusing the Ayala group of monopolistic business practices.

“PLDT is not allowed to install phone services inside malls and real estate developments (owned by the Ayala group), despite the clamor from their tenants,” Pangilinan said, noting that Globe was allowed to offer telecom services in these areas.

The Ayala group, through its Ayala Land unit, is one of the country’s largest property developers. It operates shopping malls in Metro Manila, Cebu and Pampanga.

It's funny how these big companies fight don't they? They talk about the danger of having a monopoly but all these talk are just of course to protect their business interest. In the end, the consumer ends up with the raw end of the deal.

Talk about the pot calling the kettle black.




Monopolies have existed in the Philippines for a long time. In every sector, there's a monopoly. MERALCO for example is a major monopoly. Consumers have no choice on who they want to provide service for their electricity. What happens is MERALCO ends up charging whatever the they want. You can't do anything about it since if you complain or don't pay your bills, they just cut off your electricity.
Meralco-Logo


How about malls? Yes malls like SM and Ayala. SM is the biggest mall monopoly in the country. Think about it, if you have retail business and you want to open a shop, your best bet is to open at an SM mall. If you don't, what are the chances of your business getting the customers you want? Everybody goes to the mall now, nobody goes anywhere else anymore.
SM-Logo

Because of this, the business is at the mercy of the malls. If the mall decides they don't want you anymore for any reason whatsoever, you're gone. It could be that they just don't like your face. Granted they probably won't do that, but what's stopping them?

Small businesses tend to die around the area. Traffic is a mess because traffic is re-routed for the benefit of the malls.

Yes, monopolies abound in the Philippines. Too bad no one has any power to do anything about it. It just takes a little money and all the permits are approved to build another mall.

Note: All logos are properties of their respective owners.

Comments

gundoy said…
I totally agree with you. Almost every city Ive been to here in Luzon has a new SM mall or SM residences or even SaveMore grocery stores.
They may also be trying to monopolize grocery stores.
I'm hoping that the small sarisari stores and businesses around them will survive. I prefer these small stores than SM. I avoid going SM so I dont have to buy anything there.
Maximus said…
That's just how it is in the Philippines. It'll never change...unfortunately.
Concerned Student said…
On your statement about MERALCO: If only you were educated enough (to say the least), then you would assume that the company is regulated by a government agency, in which case the Energy Regulatory Commission (ERC) acts in the interest of the all the consumers, promoting the reasonable pricing of electricity supply. Therefore, this blatantly debunks your statement which implies that MERALCO can just charge consumers any price they want. The internet offers us a big avenue for research. Google is just one click away. May bloggers like you avoid posting uneducated thoughts.
Concerned Student,

Just because it is a regulated company does not make my statement wrong or uneducated. Perhaps you should start paying for your Meralco bills and tell me you won't eventually feel the same way.

Where else do you see charges like "system loss". System loss refers to electricity lost due to pilferage and heat as it passes through transmission and distribution lines.

The Philippines has the world's highest electricity rates. http://www.philstar.com/Article.aspx?articleId=660035&publicationSubCategoryId=63

With the Philippines covered all around by water and has rich geothermal resources. Explain to me how we pay the highest electricity rates? Now explain to me how my comments are uneducated.
jun said…
BUSINESS MONOPOLIES in Philippines was founded by the BIG CORPORATES and our 1986 constitution. Try to abolish the constitution and embrace FREE MARKET and the people will lead to prosperity but the OLIGARCH will not allow it.

Popular posts from this blog

Manila - The most Beautiful City in Asia 1950's to the mid 1970's

Gretchen Fullido