Explain your understanding of the reason why a monopoly industry would be dissolved.

Based on your initial review of the CAPSIM Capstone Business Simulation, what have you have identified as the key business issues that will impact your company? Prepare to discuss this issue with the other members of your team.

Your discussion should include the following:

  • Discuss the current situation and the recent changes to the industry or competitive environment.
  • Identify the competition, and clearly explain the goals and objectives of each company.
  • Describe a recent example of a monopoly industry that was dissolved. Explain your understanding of the reason why a monopoly industry would be dissolved.


At my company Digby we produce sensors to low end, traditional, performance, high end, and size consumers. We now have Vice Presidents for research and development, marketing, productions and finance departments. Currently we sell sensors that help operate cars, smart phones, elevators, heating systems, and several other products that our consumers sell or operate.

  • Our low end consumers prefer our prices to be the lowest possible. The age of the product is preferred to be older with the reliability and performance not an issue


  • The traditional customers are price sensitive and expect our products to be more reliable than our low end consumers. They also want our sensors to be average in performance and a minimum of two years old


  •  The high end consumers in this industry are willing to pay any price with high performance and small size sensors but want our product to be reliable and zero years old. Performance consumers need a higher reliability rate and are willing to pay moderately high prices for Digby’s sensors. They want the highest performance with less important size and the sensors to be a minimum of one year old


  •  The size consumer is also willing to pay moderately high prices with a minimum age of the product to be 1.5 years of age. The reliability of the product is just above low end consumers with average performance but maximum miniaturization



In the capstone courier the competition of Digby are Andrews, Baldwin, Chester, and Erie sensor companies. The goals and objectives of each company are for each department to work together and make decisions that will improve the growth rate from year-to-year or rounds. Currently we are starting off at an even playing field and the main goals and objectives of each company is to do an analysis of each market segment I explain above and make the best decisions possible to improve the profit margins of each products they produce and sell.


A Dissolved Monopoly Industry


In the late 1990’s Microsoft a software giant was dissolved by the Clinton administration and congress. “Currently Microsoft is the largest software company in the world. It produces the majority of operating systems for all PCs. Microsoft also produces the leading word processors and spreadsheets for both Windows and Macintosh operating systems. Microsoft has an 85% market share of the office suite market, which includes Word, Excel, PowerPoint a presentation package, Microsoft Exchange, and Microsoft Access (Florian 2015).”


From my understanding the federal government fined Microsoft one million a year in taxes in late 1990’s for unethical monopoly practices. Monopoly industries are or would be dissolved because it creates an unlawful or unethical advantage in the market place. A monopoly prevents pure competition and they can drive prices upward that can damage the economy.

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