An OligopolyAn OligopolyAn oligopoly is a market dominated by a few large suppliers. Firms within an oligopoly produce branded products therefore an advertising and marketing is very important feature of competition within such market.
One of the two main characteristics of the Oligopoly is the existence of barriers of entry to and from the industry. These barriers make it difficult for a new entrant to break into a market. Oligopolists are therefore more valuable as they reduce the risk of new competition and are also protected by the barriers and are likely constantly to erect new barriers in order to maintain long-term market share and profits.
The interdependence of decision-making is another characteristic of the oligopoly. It is very significant because it makes it much more difficult for economists to model the behaviour of an oligopolistic firm. The behaviour of one firm will depend upon its perceptions of how other firms will react to changes. The responses of other firms will depend upon their perceptions of the responses of others. It is harder, therefore, to predict how oligopolistic firms are likely to behave.
It might be said Oligopoly (together with Monopoly) are price makers. They tend to exhibit a few important features as they are characteristic above and non-price competition as well. It is a marketing strategy in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design or workmanship in order to accrue greater revenue and market share. The firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any other sustainable competitive advantage other than price. It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of low price. Non price competition typically involves promotional expenditures
The basic idea is for the firm to attract and keep an important market share for a short time. However, this may well entail an increase in price in ways that promote a “greater service” instead of a good one. For instance, by selling at less than a competitive rate of $4 for two-thirds of its employees, for example, the firm may keep its core market shares in order to grow earnings over the long term. By selling a little more per month, the firm can earn higher revenue, but still maintain the core company share. This will increase its earnings over time, and thus generate higher return on capital, which will be paid in the long run. However, by selling at a lower price the other employees can pay much less for their services, providing an advantage in the long run, because it is more costly to pay back these additional employees for less than an additional paid-in-service. This is usually a process that has a very high average return and may be even partially profitable. A new strategy of selling at a lower price in order to attract more and retain customers, then, makes sense.
How often would the new strategy be successful is the key to understanding. In fact, there has been a common argument that there tends to be a general tendency towards buying at more frequently than there was before a change in product or service quality. The firm’s objective is always the same: increase the value of its product or service and retain current customers. So, while the idea might be that new products or services produce new profits, or are better service based than traditional offerings, in practice most new sales and new profits will be achieved through either the product or service. In other words, in the long run the firm might do better at attracting and retaining the customers. The same cannot be said of new products/services that increase the value of the product. New profits do not have to be lost immediately. Rather, they can be obtained by taking advantage of new technologies, techniques, and markets.
What is the best strategy to capture customers?
In practice, we consider two main strategies. There are two main strategies to capture the top customers in a given market; one in which a company is willing or able to offer customers a much-needed product or service and the other which is also in the marketplace for new or existing customers. In other words, the first approach is only attractive if it will attract new customers. In addition, the second approach has many drawbacks, such as having an overly focused “customering team,” or having the pricing system that determines the number of customers that can be considered in the first strategy.
The first approach is attractive because it is usually a way that a company can “pitch” high-quality customer service without attracting a lot of new customers. In this manner, a firm might offer a high price for a service, but is willing to spend it in order to create an interesting brand or even a new brand. But this would have been different as early as 1993, since it was still something new. In other words, the way the strategy was presented to investors at that time, and the investors saw a firm that wanted to improve its customer service as high-quality (but low quality) as possible. Now, no one has put forward a