I think there's an element of that - established companies do what they can to keep their advantage. But capitalism also allows 'creative destruction' (the term of Joseph Schumpeter came up with) - a new company comes along with a new idea which is more effective/efficient/attractive, and it displaces the existing business. Think of the ipod replacing iriver (was it called that? I had one) or Creative mp3 players, or shoe-making machines destroying hand-made shoemakers. Having said that, I think it's true that established 'empires' lobby government to try to extend the life of their businesses, and also that, at times, government regulations/legislation hamper the growth of something new/better, without even really meaning to.
I think there's an element of that - established companies do what they can to keep their advantage. But capitalism also allows 'creative destruction' (the term of Joseph Schumpeter came up with) - a new company comes along with a new idea which is more effective/efficient/attractive, and it displaces the existing business. Think of the ipod replacing iriver (was it called that? I had one) or Creative mp3 players, or shoe-making machines destroying hand-made shoemakers. Having said that, I think it's true that established 'empires' lobby government to try to extend the life of their businesses, and also that, at times, government regulations/legislation hamper the growth of something new/better, without even really meaning to.
It works for certain things, and fails badly for others...