POSSIBLE CARTELS IN THE WORLD

In today’s times, there is so much of inter-linkages between sectors/companies/countries that an activity or an event at one place can lead to the benefit of the other. I was just wondering that if some of these people decided to come together, they could easily form a cartel and ride on these joint benefits that would accrue.

Following are some of the possible cartels that my crazy mind could think of:

1. On-ground and on-air aviation cartel: Cartel between shops at the airport and aircraft carriers – Try and delay each and every flight by atleast half an hour to an hour. This would obviously give lot of time in the hands of passengers and would result in additional sales at the airport as some hungry ones would go to the restaurants, the tired ones would get a massage done, the bored ones would probably pick up a book or so and the ones with still some dough left would finish last minute shopping at the airport. While the airport stores stand to gain, not sure whether flights would gain anything or not by paying the high ground parking charges unless the retail chains at the airport agree to share the parking charges

2. Web and the Eye Cartel: Cartel between Facebook, Orkut, Twitter and other social networking sites and opticians- Make the content more and more interesting and get people to spend more time on each of the sites. Spending more time would mean spending more time looking at the screen and that would lead to eye strain and other eye problems for which people would have to go to opticians, so it is a win-win for everyone. The web sites would get more advertisers due to their stickiness and it would mean great business for the opticians.

3. Indian wedding and international honeymoon cartel: There are a few dates/months in the Indian calendar every year, when most weddings take place and nowadays a lot of Indians get their wedding fixed by a wedding planner. This is followed by a honeymoon to international destinations like Mauritius, Bali, Malaysia, etc. for a number of new couples. One way of forming this cartel is to for international hotels/airlines to tie-up with the Indian wedding planner, whose job is right from arranging for flowers, deciding a theme, getting wedding cards printed to suggesting interesting countries to couples for their honeymoon.

All a wedding planner has to do to convince a couple is to show some great pictures of the country, the hotel and the special honeymoon suite that he/she can arrange for at a great rate. Throw in a limo pick-up and the new husband would want to give that experience to his new wife. The hotels and airlines recommended by the wedding planner beat competition as the trust in this wedding planner is immensely high. This allows the hotels/airlines to tap into the right profile of customers and the money that they save on advertising can be used to make the wedding planner ‘plan’ the right honeymoon for the couples.

4. Indian and Chinese toy/mobile phone cartel: Chinese goods have made a number of small Indian dealers rich on one hand, but on the other hand, it has also hit a large number of Indian companies making Indian products and selling it in India. One of the possible cartels could be that these Indian companies pay the Chinese companies their margins on these products, buy these products and destroy them. Then they sell their products in the Indian markets at healthy margins (which covers for what they are paying to the Chinese). This will be a win-win for the Chinese manufacturers as well as the Indian manufacturers. The people who would lose out due to such a cartel would be the small dealers who make money by selling these Chinese goods and the consumers who buy Chinese goods regularly at half the prices of what they have to pay for the Indian goods. 

But then who said that cartels are supposed to be beneficial to all. In fact, the word CARTEL is supposed to mean that only. While it benefits a few groups of people/companies/sectors, there will always be another set who will bear the brunt of such a cartel.

I am sure that this way there can be a number of cartels that can be formed. One just needs to sit and look around and see the possibilities. What cartels come to your mind? Do let me know.