Case Study | Title: Himalaya Drug Company: Anti-Competition - GRM Institute

Case Study | Title: Himalaya Drug Company: Anti-Competition

Himalaya Drug Company: Anti-Competition

 

Content of the study:

  1. Introduction of the concept Anti-Competition.​
  2. Various Anti-competitive practices.​
  3. Himalaya Drug company – A case study on their anti-competitive activities.​
  4. About Amul and its empowerment elements​
  5. Factors making Amul an ethical company over its competitors.​

 

Anti-Competitive Practices

 

The term anti-competitive practice refers to business or government practices that restrict or reduce trade or competition in a given market.  Examples of anti-competitive practices include price fixing, bid rigging, boycotts, and tying agreements.​

India’s antitrust law, The Competition Act, 2002, was fully constituted on March 1, 2009 – replacing the Monopolistic and Restrictive Trade Practices Act of 1969. The Competition Act monitors any economic activity that monopolizes competition within the market; it aims to protect consumers and small enterprises and ensures the freedom of trade.

Various Anti-competitive practices:

 

  1. Bid Rigging:  Includes agreements between competitors or suppliers that specify how much to bid or when to bid.
  2. Boycotts: Typically includes joint agreements between competitors to not do business with certain competitors, trade partners, or customers.
  3. Disparagement:  making false claims or statements about a competitor.
  4. Tying: Agreements between a trade partner and customer that “tie” the purchase of one product or service to an unrelated product or service.
  5. Dividing Territories: Agreements between customers, suppliers, or companies to allocate geographies, customers, or products and services.
  6. Dumping: Includes the sale of a product or service at a loss in a competitive market, with the intent to force competitors out of the market.
  7. Exclusive Dealing: Includes arrangements whereby a retailer or wholesaler purchases from a supplier with the understanding that no other distributor will receive supplies in a given geography.​
  8. Price Fixing:  Includes agreements between competitors to establish prices, the rate or level of production.
  9. Unethical Collection of Business Intelligence: Includes the use of unlawful or unethical means such as theft, spying, or bribery to collect information about a business.

 

Read the complete case study here: Case Study on Himalaya Drug Company; Anti-competition

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