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.
Free Case Study on Oligopoly
Business composition is determined by the structure of market characteristics, and this helps determine level and area of competition. Oligopoly, above 40% for the four-firm measurement, is a market structure in which a small number of firms compete. While they can't dictate price and availability like a With four or five large firms responsible for most of the output of each industry, avoidance of price competition became almost automatic. They each know that it is in their own best interests to maintain a stable price, for if they lower their prices, their competitors will do the same and knock out any advantage the original firm was hoping to gain with lower prices. Indian Automobile Industry 1. OLIGOPOLY IN AUTOMOBILE INDUSTRY The Indian Car Industry Oligopoly Hindustan Motors the first Indian Car company to start production in India - founded in 1942 by Mr.
Oligopoly In India Case Study Solution and Analysis of Harvard Case Studies
If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. However, in some industries there are no substitutes for a product. In slight contrast, you have the oligopoly which is at least two companies competing for market share. Comparison: 1982 Number of manufacturers: 3 Vehicle sales: 20000 Number of models: 3 2009: Number of manufacturers: 15 Vehicle sales: 19,80,000 approx. After that a student is able to research the suggested problem of the case investigating the case site, collecting data in the Internet or at the library using only reliable and up-to-date sources.
Oligopoly in india
An industry dominated by a small number of large firms 2. 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. The competitive of a imperfect structure are almost the same as a quite identical to realistic market conditions where some, monopolists, monopolistic competitors, oligopolists, and… Concentration Ratio Essay Example There are four major types of market structures: Perfect competition, with a very low concentration ratio, is a market structure with many firms, each selling an identical product to many buyers. If a company has managed to discover a new sector of the market and produces high-quality goods and services and has won respect and credibility of the customers, it has a chance to be the best one in its sector and become the example of oligopoly. After introduction, problem statement is defined. This can cause a type of chain reaction in a market situation.
Oligopoly market indian automobile industry case study Free Essays
It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. Firms will use non price competition methods in order to make their product or service stand out from the other, these may include mass media advertising, loyalty cards, home delivery, expanded opening times 24hrs internet shopping, special offers and superior customer service. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. It has also been argued that India also has oligopolies in their aluminum, cement, steel, and automobile markets Chand. After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. The automotive industry has been playing a leading role in spurring growth in economies throughout the world since the industrial revolution. Then, a very careful reading should be done at second time reading of the case.
