- There are many businesses but only a few dominate the market.
- Each business tends to have differentiated productd with a strong brand identity.
- Brand identity is encouraged by the use of heavy advertising and promotion.
- Prices can be stable for a while but short price wars do occur.
- Some barriers to entry do exist: high start up costs in relation to manufacturing.
Cartels: When businesses in an oligopolistic market act together. They try to keep prices high, whilst the businesses involved share the market between themselves.
ADVANTAGES: ECONOMIES OF SCALE, MONEY FOR INVESTMENT AND INNOVATION AND OLIGOPOLIES TARGETING A WIDE RANGE OF MARKET SEGMENTS PROVIDE VARIETY AND CHOICE.
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