Question

Olympus has integrated many components into its SLR camera. Recently, Olympus has introduced a smartphone app, Olympus Image Share (OL.Share) to pair with its camera. It says: "Paired with a compatible Olympus camera, the Olympus Image Share (OL.Share) smartphone app makes photography more enjoyable than ever. With this app, you can release the shutter remotely, then easily import photos from the camera to your smartphone and share your most inspiring moments with friends and family". a. How might this news be an example of non-price competition for an oligopolistic firm? Discuss. [15 marks]

Answer 1

Ans

In oligopolists competition competition is severe. But more often than not it is non price competition. Companies know price competition may lead to losses to all firms. That is why they compete on the basis of non price competition

This non price competition involves patents, new packaging, more variety of same products, more advertising etc. Similarly firms can differentiate their products through the services that they provide along with products This is the case in consideration. The app offers better services and functions rather than reduction in price. Thus here competion is based on additional services and functions that the product offers. Each firm wants to offer better services and functions but always keep costs into consideration . Thus it is non price competition