An oligopoly is a market structure in which a few firms dominate the industry. In an oligopoly, firms have some control over prices due to their limited number and the interdependence among them. Oligopolies can be found in various industries, including telecommunications, oil, and automobiles.
One example of an oligopoly in India is the telecommunications industry. In the early 2000s, the Indian telecommunications industry was dominated by a few firms, such as Bharti Airtel, Vodafone, and Idea Cellular. These firms had a significant market share and were able to exert some control over prices.
However, the entry of a new player, Reliance Jio, in 2016 disrupted the oligopoly. Reliance Jio introduced disruptive pricing strategies, such as offering free voice calls and cheap data plans, which led to a price war among the firms. As a result, the market share of the incumbent firms declined, and Reliance Jio emerged as a dominant player in the market.
Another example of an oligopoly in India is the oil industry. The Indian oil industry is dominated by a few firms, such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum. These firms have a significant market share and are able to influence prices. However, the entry of private firms, such as Reliance Industries and Essar Oil, has increased competition in the market.
In conclusion, the Indian telecommunications and oil industries are examples of oligopolies where a few firms dominate the market. However, the entry of new players has increased competition and disrupted the oligopoly in some cases.
Case study of oligopoly on automobile industry
The safest thing is to never lower prices and only raise prices when there is abundant evidence that the other firms will also raise prices. The classic case of Oligopoly is the cellular market of India …show more content… Oligopoly in any industry is the power in the hands of few and one influencing the activities of the others. For this reason, a benchmark of… Differentiating Bewteen Market Structures There are different classifications of markets and the structure of a business determines which classification it will fall into. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. The most important fact is that the leading companies in the sector are connected somehow, because the decision of a single company influences the whole market, so all the decisions are discussed by all the leading companies. Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company. In a market with only one supplier of a good or service, the producer can control the price meaning that the consumer does not have a choice, cannot maximize his or her total utility, and has very little to no influence over the price of the good or service they require.
Oligopoly market indian automobile industry case study Free Essays
Providing two undesirable alternatives to make the other one attractive is not acceptable. These forces are used to measure competition intensity and profitability of an industry and market. Monopolistic competition, below 40% for the four-firm measurement, is a market structure with many firms; each firm produces similar but slightly different products. Therefore interdependence rules the market as it leads to major changes across the market and competitive reactions are gauged before announcing any …show more content… Additionally few other points to be noted which are really not that easy to be taken up while entering a market of few strong players like initial high set up cost, licenses, government regulations, patents and copyrights. It is similar to a monopoly in that the power in the industry is heavily concentrated, but there is still competition between those groups.
Case Study on Oligopoly
We try to do our best to collect the most interesting and popular case study samples and examples. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. If they raise their prices, the competitors will not follow suit and will therefore steal away all the customers of the higher priced product. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused. It has also been argued that India also has oligopolies in their aluminum, cement, steel, and automobile markets Chand.
