Question

Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you've seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer.

Answer 1

Firm : A

Market : Oligopoly

Industry : Tele communication service provider

Every month I will recharge my Mobile number. There are so many buyers in the market but the sellers are few like V, J, I and Al etc which is similar to an oligopoly market structure. The service they offer is same which is data and voice calling along with SMS which is a homogeneous product but the price at which they offer the service will differ like an oligopoly. All these service provider are trying to influence the market but none were able to succeed due to the market structure which is oligopoly.

Compared to other service providers my service provider A provides a very good signal strength even in Remote areas and also good net speed which other service providers were not able to do. The price may be high than other providers but the service it provides is par excellent than other competitors.