Case study on oligopoly in indian. CASE 6 2022-10-17
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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.
Indian steel industry monopoly or oligopoly Free Essays
These Premium Monopoly Oligopoly Cartel Indian Beer Industry - Oligopoly increases. After defining the problems and constraints, analysis of the case study is begin. Each additional unit of output sold increases Premium Economics Supply and demand Monopoly Steel Industry world. If one firm were to lower its prices, it is likely that its competitors will do the same and all will suffer lower profits. Firms sell either identical or differentiated products 3. Satisfaction is a subjective concept and therefore difficult to determine. This can cause a type of chain reaction in a market situation.
However, all of the information provided is not reliable and relevant. 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. On the other hand, it is dangerous for any single firm to increase its prices since the others might hold their prices in order to gain market share. Oligopoly: Some concepts and definitions 3. Oligopoly Case Study: Oligopoly is the type of the structure of the market which is characterized with the extremely small number of the competing firms. Following have been the features of Auto industry in the past financial year.
In the world market there are oligopolies in steel production, automobiles, semi-conductor manufacturing, cigarettes, cereals, and also in telecommunications. Effects of the Transformation New firms, including foreign players, entered with modern engineering, efficient processes and modern shop-floor layouts Indian automobile industry grew at 14. The industry has significant barriers to entry. Just visit our website and fill in the order form with all paper details: Enjoy our Professional Case Study Writing Service! COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. OLIGOPOLY A market structure dominated by a small number of large firms, selling either identical or differentiated products, and significant barriers to entry into the industry. Many large organizations are involved in merger and acquisition to strengthen its position besides expanding their market share.
Oligopoly market indian automobile industry case study Free Essays
However, resources should also be perfectly non sustainable. Tutor name : Hind Francesca vii. Market Structure is defined as an assortment of consumer products that are homogeneous, or in English terms. The most common ones found in the business world today are sole proprietorships, partnerships, and corporations. 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.
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. Pest analysis is very important and informative. 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. It depends on many factors and varies from person to person and product to product. The following tables and charts consist of the performance of Auto industry in past few years. Comparison: 1982 Number of manufacturers: 3 Vehicle sales: 20000 Number of models: 3 2009: Number of manufacturers: 15 Vehicle sales: 19,80,000 approx.
One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. STEP 4: SWOT Analysis of the Oligopoly In India HBR Case Solution: SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. The barriers limiting entry into the market the market power lies within 4 top producing firms. The strengths and weaknesses are obtained from internal organization. Understanding the market is knowing the processes it uses to operate on a local but international scale.
What are case studies showing examples of oligopoly in India?
The explosion of investment in the industry world wide demands high levels of competencies to reap fruitful benefits. Industry Structure A B C D E 4. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. Basically every family from Youngstown had at Premium Steel. Then, it is extremely difficult to compete with the leading companies in oligopoly, because the standards and requirements are too high. Automobile Industries associated with India Quite a few Domestic Indian Automotive companies: Tata Motors, Mahindra, ICML, Hindustan Motors, Premier Automobiles Ltd. Next, in order to survive and receive profit a company in oligopoly does not need to conduct differential policy and broaden the choice of its production.
Oligopoly In India Case Study Solution and Analysis of Harvard Case Studies
Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. Selling homogeneous products - pure oligopoly. Further to elaborate there are few oligopolies like leather which although have differentiated or heterogeneous products but the base product which is leather is same for all only the product line could vary. STEP 9: Selection Of Alternatives For Oligopoly In India Case Solution: It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. When you dig the matter and try to analyse why is this encouraged? Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company. Finally, the fourth type of business structure is called monopolistic competition.
Markets are divided according to the composition of the business and what it provides to the specific market. However, introduction should not be longer than 6-7 lines in a paragraph. Many people are aware of what a monopoly is and the federal government has even taken steps to make monopolies in the United States illegal. The firms might produce almost identical products. However, in some industries there are no substitutes for a product.
