By Bedelbaeva A.
Case Study on Pure monopoly.
I’d like to take company "Kazakhoil" (national pil and gas company) as example for my case study because the major goal of the National Oil company, Kazakhoil, remains the creation of a powerful national company, competitive on the world market and able to implement government policy in the oil and gas industry, ensure the efficient development of its oil and gas resources. For product of "Kazakhoil" there are no close substitutes, big barriers to entry.
With a vien to increase the competitiveness of individual directions of the activities the Company has established the following subsidiaries: Kazakhoil-Prilling and Kazakhoilpromgeofizika.
The specialised service enterprises were established via restucturing of several units of Kazakhoil and they are respousible for the provision of high level services to all operators on the oil and gas market of the country. The objective of establishing of these enterprises is to diversity activities of the Company, effectively employ highly qualified personnel "Kazakhoil" has resource Potential:
Investments
Foreign investments in the projects eith participation of Kazakhoil
|
Country |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Total |
1997 |
|
USA |
217.8 |
533.58 |
348.23 |
237.21 |
1336.81 |
493.97 |
||
|
Turkey |
54.41 |
54.56 |
62.59 |
44.08 |
215.64 |
64.98 |
||
|
Germany |
7.70 |
11.8 |
10 |
15.87 |
45.37 |
59.11 |
||
|
Canada |
0.16 |
4.3 |
6.05 |
10.34 |
20.86 |
50.5 |
||
|
France |
11.4 |
32.7 |
79.2 |
71.98 |
37.76 |
31.32 |
264.37 |
1.57 |
|
G B |
36.15 |
79.87 |
61.48 |
176.51 |
44.08 |
|||
|
Cyprus |
0.53 |
0.04 |
0.65 |
0.34 |
1.56 |
5.00 |
||
|
Italy |
47.58 |
61.22 |
44.67 |
123.47 |
29.19 |
|||
|
Switserland |
0.8 |
3.5 |
4.1 |
3.85 |
3.18 |
15.42 |
21.3 |
|
|
Netherlands |
17.58 |
18.56 |
19.56 |
55.7 |
4.37 |
|||
|
Japan |
5.71 |
6.17 |
11.88 |
2.8 |
||||
|
Hungary |
0.06 |
0.08 |
2.25 |
0.3 |
2.7 |
1.17 |
||
|
Russia |
5.4 |
5.4 |
57.87 |
|||||
|
Oman |
4.38 |
5.49 |
4.9 |
5.2 |
20.02 |
16.00 |
||
|
Total |
11.93 |
33.56 |
367.3 |
759.1 |
639.4 |
484.54 |
2295.75 |
851.94 |
All not privatizational governmental portfolio of oil enterprises, shares of participation in joint companies were given to regulational fund of "Kazakhoil".
Government of KZ gefined shat all rights, which belong to KZ in Agreement about production, prospecting, developing, extraction (mining), working over of hudrocarbons to pass to "Kazakhoil".
a) How you understand that oil company (for example Kazakhoil) is monopoly?
b) If there were somewhat less formidable barriers may you say that Kazakhoil isn’t monopoly?
c) How you think, is there definetely unfair competition?
True or False
Problem Questions:
Using materials: