Gorilla

DEFINITION of 'Gorilla'

A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing and availability of its products, relative to its competitors in the industry. This often forces competitors to resort to other tactics to compete, such as clever marketing or differentiating their offerings.

BREAKING DOWN 'Gorilla'

A gorilla firm does not necessarily need to have a monopoly within an industry to dominate it; however its overall dominance in the industry may often lead people to perceive it as a monopoly. This term is a reference to the old jokes about the 800-pound gorilla that, "does whatever it wants." For example, you might hear people say that McDonald's is an 800-pound gorilla.

RELATED TERMS
  1. Natural Monopoly

    A type of monopoly that exists as a result of the high fixed ...
  2. Monopoly

    A situation in which a single company or group owns all or nearly ...
  3. Legal Monopoly

    A company that is operating as a monopoly under a government ...
  4. Franchised Monopoly

    Monopoly status given by the government to a company. A franchised ...
  5. Price Maker

    A monopoly or a firm within monopolistic competition that has ...
  6. Rate Of Return Regulation

    A form of price setting regulation where governments determine ...
Related Articles
  1. Markets

    How & Why Companies Become Monopolies

    Without competition, monopolies can raise prices and lower quality leaving consumers little choice. But monopolies can benefit consumers as well.
  2. Markets

    A History Of U.S. Monopolies

    These monoliths helped develop the economy and infrastructure at the expense of competition.
  3. Markets

    How a Monopoly Works

    In economics, a monopoly occurs when one company is the sole (or nearly sole) provider of a good or service within an industry. This potentially allows that company to become powerful enough ...
  4. Markets

    A History Of U.S. Monopolies

    Here are a few of the most notorious monopolies in U.S. history.
  5. Markets

    New Monopoly Edition Ditches Paper Money (HAS)

    Hasbro's latest version of Monopoly speeds up the classic game and reflects our movement towards a cashless society. It will still probably end friendships over the "free parking" rule, though.
  6. Managing Wealth

    5 Lessons Monopoly Teaches Us About Finance And Investing

    The game of Monopoly can increase your chances of having a better and useful understanding of prudent financial and investment principles.
  7. Markets

    Early Monopolies: Conquest And Corruption

    This structure can be very effective, but it is also known for its abuse of power.
  8. Markets

    Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.
  9. Personal Finance

    Why Monopoly Is A Terrible Finance Teacher

    With its plethora of inaccuracies, Monopoly doesn't offer the best lessons in real-world finance.
  10. Personal Finance

    Why We Need Antitrust Laws (MSFT, AAPL)

    A look at antitrust laws in the United States and the many anticompetitive practices they safeguard against.
RELATED FAQS
  1. What is a monopoly?

    Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when ... Read Answer >>
  2. What do high economic profits in a given industry suggest about that industry?

    Learn how certain industries have high economic profits and what it says about those industries; the key is the industry ... Read Answer >>
  3. What are common examples of monopolistic markets?

    Discover what causes real instances of market monopoly, how it persists and where monopoly privilege is most common in the ... Read Answer >>
  4. Are monopolies always bad?

    Learn why governments sanction some monopolies, such as monopolies over public utilities, and why these monopolies are good ... Read Answer >>
  5. How does a monopoly contribute to market failure?

    Read a simple overview of the theory of market monopoly, where it originated and some contemporary challenges to the classical ... Read Answer >>
  6. Why are monopolistic markets inefficient?

    Find out why general equilibrium economic models suggest monopolistic markets can lead to inefficiencies and why some economists ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center