Example 1
Federal antitrust executives are investigating whether a multinational pharmaceutical company has tried minimizing the impacts of generic competition to one of the valid prescription drugs. One of the best companies is Antidepressant Drug Company which sells verities of drugs, with sales of approximately $2.11 billion the previous year. It typically presented a good move for the company since the company raised its sales by nearly 22$ as compared to the other year.
A board known as Federal Trade Commission is carrying out an examination to check whether the enterprise took up in activities to avert the unbranded alternatives to the authorization drug from being introduced into the environment ( Federal Trade Commission, 2013). The FTC board is demanding a practice among the companies and the unbranded manufacturers to accept the fact that they will detain the introduction of affordable unbranded drugs to the users in the market.
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The United States antitrust laws are working extra hard to safeguard the aggressive process guidelines that are taking part in the free market providence. It is one of the processes that accelerates the user choice and give room for the competitive price, where members of the society benefit from the best possible resources allocated.
Some of the scientists would like to do away with the stiff competition in the market so as to increase the sales. It is one of the ways that can be used to establish control over the open market, and it would be an advantage to the larger companies since they would have resources that small business may not be in a position to have so as to restrict the market for drug sales ( Hollman and Kovacic, 2011 ). Typically, if a larger company sells the same drug a small business sells at a lower price, it will affect the small businesses. Therefore the best way that major companies can use is to lower the generic companies down is through merging so as to keep them in the same position. When they merge, they will be in a better place to compete with the prices of the generic company. Through this, the customers will be able to buy name brand drugs at affordable prices, and this will make the business to grow at a faster rate because of the regular customers. For a company to delay generic brands is where the business loses the cost. Therefore, if they can be in a position to stop the generic products from reaching the market, then they can get the best. When they are allowed to enter the market first, they will be cheaper and be the same as the name brands which would be expensive. As a result, customers will go for the affordable products and leave the expensive ones.
Legal barriers to the market entry are different things that can prevent the new products from hitting the market. There are several barriers such as economies of scale, geographical barriers and brand loyalty through advertisement. Other obstacles are predatory pricing, vertical integration, right parents restricted pricing and knowledge ( Weizsäcker, 2012). Limit pricing is one of the significant barriers that affect the market entry in the pharmaceutical firms since if the generic companies are already established as selling a product, larger companies will not be in a position to determine the price unless they lower the prices so as to fit the competitive market.
Therefore, in this situation, the ethical dilemma would be would the two leading companies merge so as to bit the other groups is right or wrong. To my perspective, it should go either way since it is all about the commerce and the two firms merging are solely making attempts to get the customers of the unbranded company so as to sell all their goods. The Federal antitrust officers handling the extermination would be better if they find out if at all the firms are trying to restrict market competition of the unbranded companies.
Example 2
The two largest commission of Telecommunication Company made an agreement to a $16 billion merger that created the global biggest telecommunication company in the globe. Despite the fact that some agree that the synergy existing between the two prominent companies would be dynamic, others expect the direct users to cater for the merger, depending on the dominant firm in several service fields.
A consumer advocated is defined as an individual who administers, manages and coordinates the services and all the available programs so as to assist the people who have been wronged by the corporate businesses. One of the primary responsibilities of the consumer advocate is to create connections with the best legal representations. The consumer advocate is also concerned with mergers since when the two best companies merge, it can significantly affect the minor companies ( Choi and Gerlach, 2012 ). The companies do assume to own all the available businesses around the globe, and therefore through merging, they can critically increase the prices of their commodities as they drive competition out of business. Whenever large companies with different resources merge than other minor enterprises that do not have the resources like that of the bigger company, the two companies cannot compete. As a result, the small business will eventually fall, and this will lead to the company going out of business. Once such incidences are observed, it will affect the customers so much since the merging companies will increase the prices of their commodities and since they will not have an option, it will force them to move to the high companies.
The merging of the company can affect the customers in different ways since the variety of resources may get either smaller or larger. Typically if such variety of resources get smaller, it means that the stakeholders will have limited options resulting in limited choices when compared to other companies. Also, the merging of the companies will also affect the services if the companies create relationships with their clients and the minute they merge their connections will be lost. It may result in loss of various valuable customers and even the customers. In various cases, it may take several years for the company to restore its relationship with the valuable customers since they may not like whatever the company may have introduced. It may also affect their relationship since the enterprise may not be having excellent things as it used to in the past before companies merged ( Hudson & Thal, 2013 ). It is important to note that not all amalgamations are not in the best attentiveness of the direct consumers and therefore it is a primary concern of the customers. In some instances, companies merge because they think this will make substantial changes to the company not having in mind that the clients also play a fundamental role in them.
When the company emerges, it is always believed that they will be in a better position to fight the competitive market since it will be able to grow. Ideologically, there are several ethical dilemmas that they will face during the emerging process. Te moral dilemma includes; would the company allow the customers and employees aware of the merger or would it plays a quiet game and not allows them known until it is done. If any case the prices of the products are raised, it will dearly affect the customers ( Terpstra, Foley & Sarathy, 2012 ). One of the main ethical issues is the customers paying a lot of money for a good because the two companies are merging for its good and not necessarily for the customers’ product. It would work out for some time, but if any of the customers stay and find out that other telecommunications companies to venture out to, it will be one of the major concerns for the enterprise. As a result, the operation may lose a lot of money that they would have used to handle important things in the business.
It is, therefore, substantial to note that for any company carrying out important business, one of their primary concerns should be their customers since they are the only people who keep the company going. Without them, the company cannot survive in a competitive environment. Another important ethical dilemma would be, so long as the company emerges, how will it affect the workers? The company will ultimately have to either permit or relocate some employee. The only problem is how the issue will be addressed to the employees who have suffered for the company since it was established.
References
Choi, J. P., & Gerlach, H. (2012). International antitrust enforcement and multimarket contact. International Economic Review , 53 , 2, 635-658.
Federal Trade Commission. (2013). Federal Trade Commission smokeless tobacco report for 2011. Washington, DC: Federal Trade Commission .
Hollman, H., & Kovacic, W. E. (2011). The International Competition Network: Its Past, Current, and Future Role. Minnesota journal of international law: a journal dedicated to the study of international law and policy Minnesota Journal of International Law, 20 , 2, 274-323,
Hudson, S., & Thal, K. (2013). The impact of social media on the consumer decision process: Implications for tourism marketing. Journal of Travel & Tourism Marketing , 30 , 1-2, 156-160.
Terpstra, V., Foley, J., & Sarathy, R. (2012). International marketing . Naperville, Ill: Naper Publishing Group
Weizsäcker, C. (2012). Barriers to entry: a theoretical treatment (Vol. 185). Berlin, Heidelberg: Springer Berlin Heidelberg
