Features of Monopolistic Competition: 1. Large Number of Sellers: There are large numbers of firms selling closely related, but not homogeneous products. Independent firms having limited share in the market. Hence, individuals will be having limited contribution in the market. Large number of firms leads to competition in the market.
The characteristics of an oligopoly market includes few sellers offering homogenous or standardized products, mutually dependent firms and low barriers to entry. There are few examples of oligopolistic industries which is smartphone operating system industry and automobile industry. In this case, smartphone operating system industry such as Andriod OS (Google Inc.) and Iphone Os / iOS (Apple). While for automobile industry, examples include Honda and Perodua. It can only be operated by bigger companies and every companies have different goals to achieve.
Oligopoly is a form of market structure where less than two firms are dominating the market. The market is controlled by a small group of two or more firms. It admits that the price of a firm affects the profit of the other firm. The firms can agree to price collusion and create barriers to entry for new firms. If the firm do not agree and create barriers to entry for new firms then, they will tend to lower their prices and open the market for newer firms.
These products hence cannot substitute each other. In the monopolistic competition, the firm ignores their prices impact on the other firm's product prices while taking the charged price by the rivals just like it's given. In a coercive government, a monopolistic competition falls under a government granted monopoly. In this case, the firm maintains spare capacity. Examples of monopolistic competition include clothing's, shoes, cereals and restaurants and all the service industries in the different
Oligopoly: In oligopolistic market structure, a few firms exist and dominate the market. The market is highly concentrated because the market is shared between a few firms. The small firm enjoys large volume of market share. It is somewhat similar to monopoly, except instead of one firm a few firms operate and dominate the market. Due to small
State of limited competition, in which a market is shared by a small number of producers or sellers. Meaning the market only has a handful of companies functioning in the same structure. The substitution of a product for another product or one vehicle for another it is completely possible in an Oligopoly market only from one of the few companies in the Oligopoly market structure. In the United States these companies would include Ford, GM, and Chrysler (Grunert n.d.). It is extremely difficult for any new Company wanting to enter into an Oligopoly market structure.
An example of this is SA Brewery as it dominates the beer market of South Africa. (South African Reserve Bank nd) An Oligopoly is a market state where a small number of firms own a large part of the market share. An Oligopoly usually has high barriers to market entry. The number of firms in an oligopoly must be low enough for the actions of one firm to significantly impact the others. (Investopedia nd) An example of an Oligopoly would be the infamous rivalry between Coca Cola and PepsiCo.
INTRODUCTION This report will seek to reveal a detailed status of the beverages industry in the world with respect to the case study company (the coca cola company). The Beverage Industry has been on a rapid growth making competition stiff among the companies within the industries. The industry can be divided as to those producing alcoholic and non alcoholic beverages; this study will mostly focus on the non alcoholic beverages sector. Being considered among the most competitive industry, companies ought to become creative, unique and equipped with appropriate strategies in order to stand any chance of survival. Among these strategies include diversifications, efficient distributions, advertising among others.
It is a form of competition that characterizes a number of industries that are familiar to consumers in their day-to-day lives. Examples include restaurants, hair salons, clothing and consumer electronics. To illustrate the characteristics of monopolistic competition, we'll use the example of household cleaning products. Number of firms Say you've just moved into a new house and want to stock up on cleaning supplies. Go to the appropriate aisle in a grocery store, and you'll see that any given item—dish soap, hand soap, laundry detergent, surface disinfectant, toilet bowl cleaner, etc.—is available in a number of varieties.