With regards to the Canadian Snow removal companies, the same is the case where there is plenty of heavy snow throughout the year which implies a high cost in terms of capital equipment required to remove the snow. Therefore the industry structure is oligopolistic by default.
The Pre-insulated pipe companies in the European Commission are also a necessity in the cold countries and that’s what makes the companies which provide it so powerful. Moreover the firms need a lot of capital to set up the machines and factories to make these. Another reason for their oligopolistic nature is the procurement of raw materials for the pre-insulated pipe, which again needs heavy investment.
The German power cables companies exist in few, powerful groups as the supply of power cables to the electricity providing firms has to be restricted in order to ensure quality of the cables supplied. If these power cables are faulty the entire grid could suffer. Therefore the power cables have to meet certain standards and the company that produces power cables has to be certified in order to supply the power cables. That is why the power cable producers in Germany will cooperate in order to produce a similar quality cable and to increase their bargaining power.
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