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This article analyzes the strategy of the United Shoe Machinery Company, a company that dominated the world market for footwear machinery in the first half of the twentieth century, its penetration in Latin America and the rest of the world and the antitrust legal proceedings suffered in the United States.

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Despite its practical monopoly position, the company had an efficient performance that boosted technological innovation and modernization of the footwear industry in many countries.

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The United Shoe Machinery Company dominated the world market for footwear machinery in the first half of the twentieth century. This article analyzes the company’s strategy, its penetration in Latin America and the rest of the world, and the impact on the company of antitrust lawsuits in the United States. Despite its practical monopoly, the company had an efficient performance, which fueled technological innovation and modernization of the footwear industry in many countries.

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Neoclassical economic theory states that monopolies, that is, situations opposite to perfectly competitive markets, are characterized in that the monopolist can determine the price by deciding how much he produces. In these circumstances, to maximize its profits. USA database email extractor

the monopoly company will reduce the final amount produced and raise the price compared to what would happen in a competitive market situation. The monopoly prices will differ more than those of competition the lower the elasticity of the demand with respect to the price of the goods produced. The USA buys an email database. The USA buys an email database.

Therefore, the monopoly does not allow the market to function efficiently and has a social cost. This reasoning justifies that public authorities actively intervene to combat monopoly situations and foster competition.

The United States, at the end of the 19th century, was one of the first countries to adopt antitrust measures when developing specific legislation for this. The large size of the US market accentuated the trend towards the large company generated by the second technological revolution and political power tried to limit the phenomenon bypassing the Sherman Law in 1890 and the Clayton Law in 1914. USA best b2b email database

The application of both laws resulted in complex judicial proceedings, in which some of the main companies in the country were involved. The United Shoe Machinery Company (hereinafter USMC) was one of these companies were the proceedings that opened against it, especially the one initiated in 1947, became an unavoidable reference within the jurisprudence on the matter. This is an interesting case, where it can be seen that reality does not always fit the simplifications of economic theory.

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If the market of machinery for footwear is defined as that of the machines specifically made for the manufacturing process of this type of article, whose offer is integrated by the companies specialized in the production of these machines and their demand by the footwear manufacturing companies, USA best database for email marketing

if the participation of the bidding companies is measured through the proportion of physical units of active machinery supplied by each of these companies, it can be affirmed that the USMC managed to gain a widely dominant position in this market, close to monopoly, in the United States and in many other countries in the first half of the twentieth century (Kaysen, 1956). USA consumer email database

This situation prevented the development of other machinery companies with this specialization and channeled a remarkable flow of resources from the shoe factories to the company. However, this article attempts to show that, in the face of what economic theory predicts, this domain was accompanied by efficient performance, which facilitated the technological modernization of the footwear industry in many countries. USA bulk email database free download

In the first part, the origin and trajectory of the USMC are synthesized, in addition to showing the main features of its business strategy, among which the machinery leasing system stands out.

It also summarizes the situation in which the footwear industry in Europe and Latin America was at the beginning of the 20th century and the influence that the USMC had on it. USA best email database provider 

The following is how the United States antitrust policy affected the company. The following section contains the review that various authors have made, from the economic point of view, of the judgments against the USMC. This gives rise to an analysis of the consequences that the monopolistic position of the company and the measures dictated by the courts to counter it had for the industry. Finally, the conclusions of the work are specified. USA’s best email management database.