Oligopolistic Companies and How They Compete - 1234 Words

Oligopolistic is a market structure which under the imperfect competition. According to Sloman Garratt, oligopoly is only few large firms share a large portion of industry and control the market. When we hear that a term about â€Å"Big three†, â€Å"Big four† or â€Å"Big five† it can be set down as oligopolistic industry. In the oligopoly market competition, depends on the firms produce homogeneous or differentiated products and it will be categorize as homogeneous oligopoly or differentiated oligopoly. As Mcconell Brue, 2008 stated because of the small number of firms, oligopolistic have worthy of consideration command over the prices and they have to think about their competitors conceivable reaction to their product`s price, product`s quality, advertising outlays and so on. The few large firms are interdependent but they have to always be awake of competitor`s action to maintain their firm can stand strong in the industries. Oligopolistic have a strong bar riers of entry for the new competitors, which alike and dedicative by the pure monopoly. According to Jackson, Mclver Wilson stated oligopolistic industries have a large economies of scale have to be consider for the new competitors because they must have a large amount of capital to invest heavy on the technology in the beginning, and this is the prevention of new competitors can easily enter to the industry. Furthermore, there are many industries are counted as oligopolistic for instance mining, steel, soft drinks, airlines,Show MoreRelatedThe Merger Of U.s. Airways And American Airlines1170 Words   |  5 PagesAirlines, most people would now agree we are living in the age of airline oligopoly. Oligopolies form when there’s a state of restricted competition, and new companies cannot break into the industry for reasons like high-entry costs or government restrictions. This is the condition of the airline industry, today. In order to breach the oligopolistic nature of the airline industry, airlines must be able to break through high barriers to entry such as: retaining substantial capital requirements, havingRead MoreCereal: the Manufacturing Industry1164 Words   |  5 Pagesvast industry stems from the late 1800s when John Harvey Kellogg and C. W. Post began cereal production in Battle Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery store shelves. However, only a few select companies make every one of those different kinds of cereal. There are four different categories into which economists classify industries. These categories are perfect competition, monopolistic competition, oligopoly, and monopoly. Each of these fourRead MoreOligoplistic Markets in Terms of Structure and Market Conduct808 Words   |  4 PagesOligopolistic markets, such as supermarkets or car manufacturing, can be defined in terms of market structure or in terms of market conduct. An oligopolistic market is one that has several dominant firms with the power to influence the market they are in; an example of this could be the supermarket industry which is dominated by several firms such as Tesco, Sainsbury’s, and Waitrose etc... Furthermore an oligopolistic market can be defined in terms of its structure and its conduct, which involveRead MoreMarket Structure Of The Uk Supermarket Sector1600 Words   |  7 Pages1.0 INTRODUCTION: Second part of this report will evaluate arguments and present conclusions about the UK supermarket sector being described as oligopolistic and how oligopolistic markets often suffer from collusion. This report will present findings if UK supermarket sector is oligopolistic or otherwise. 2.0 FINDINGS: 3.0 Market structures: Market structures are classified with regards to the competition – either their presence or absence. There are different types of market structures: perfectRead MoreForms of Industrial Organziation1432 Words   |  6 Pagesrespects: the number of firms in the industry, whether those firms produce a standardized product or try to differentiate their products from those of other firms, and how easy or how difficult it is for firms to enter the industry (McConnell Brue, 2004). This paper further defines each market structure and provides an example of a company representing each market structure. Monopoly A monopoly exists when a specific individual or an enterprise has sufficient control over a particularRead MoreCoca Cola As A Multinational Beverage Company Essay1484 Words   |  6 PagesIntroduction The Coca-Cola Company is a multinational beverage company that deals with manufacturing, retailing, and marketing. In addition, Coca-Cola Company markets its products and distributes to various retailers all over the world. The company came into being about one hundred and thirty years ago (Eldred, 2008). The organization is best known for its lead item Coca-Cola, created in 1886 by drug specialist John Stith Pemberton in Columbus, Georgia. The Coca-Cola recipe and brand was purchasedRead MoreMarket Structure Of The Uk Supermarket Sector1527 Words   |  7 PagesINTRODUCTION: Second part of this report will evaluate arguments and present conclusions about the UK supermarket sector being described as oligopolistic and how oligopolistic markets often suffer from collusion. This report will present findings if UK supermarket sector is oligopolistic or otherwise. 2.0 FINDINGS: Market structures: Market structures are classified with regards to the competition – either their presence or absence. There are different types of market structures: perfect competitionRead MoreMarket Structure of Petrol Companies952 Words   |  4 PagesPetrol companies have the market structure of an oligopoly. 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It sells products like CD-RW and DVD-RWRead MoreEssay about The Structure of Australia’s Banking Industry1252 Words   |  6 Pagesstructure, performance and conduct of banks are important as they ensure that they act competitively, however in Australia the market is dominated by four major banks threatening competition. The structure in the Australian banking industry is fairly oligopolistic, decreasing the amount of competition evident in the market. Performance of the dominating banks has shown an increase in the profitability and return of assets compared to international banks in a freer market. Through minimal competition, the