The Oligopoly Market: Characteristics and Features

Categories: EconomyOligopolyPrice

OM is also the main market in structures. These kind of market very rare to find because info and data not available and it’s really hard to find. It actually need a huge amount of capital to start a new business. Therefore whoever enter to this kind of markets earning huge amount of profits and their products and competition really high. It drives them for innovation. Because of that they are having power to set a price for their products.

These are some examples to understand about OM

Transport

  1. Uber
  2. Pick Me
  3. Trip More
  4. Yogo

So here Uber invented automated taxi system using technology then all the others tried to adopt that technology and implement it on local market. And Pick me were able to do that and now they are competing with uber. But there are more and more taxi systems but no body use. That’s why once you enter to market its hard for new entrants because it’s hard to survive.

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So what are the key factors about OM,

  • Barriers to enter
  • Need huge amount of capital
  • Initial cost really high
  • Don’t have enough data in the market
  • High competition
  • Quality of the products really high and unique from other products
  • Price setter
  • Earning huge profit in short and long term

Why OM Important to the Country’s Economy

OM products are playing a huge role in economy. Because if all the business are fall under monopoly its not good for economy since there isn’t a competitor one person can do anything.

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Then there can be more and more law quality products and unrealistic prices that cannot afford by customer. But if that economy can transform those monopoly to Oligopoly it makes a good competition and people try their best to use resources in efficient way.

But why government oligopolies lost making?

  1. Timber cooperation
  2. CEYPETCO
  3. Sri Lankan Airlines
  4. SLTB

these are few examples for GOV oligopolies but tho they OM they are lost making,

  • Management issues
  • Highly political involvement
  • Using very primary techniques
  • Don’t move with new technology
  • Wasting resources
  • Labour wages cost very high
  • Motivation really low for these entities

So according to all these info what we can understand is it’s so hard to enter to this and hard to survive. But there are more benefits for world economy even for personal benefits.

If a government more courage for Oligopoly and Perfect competition market it will make a huge good impact for those economy.

So for survival in long term all those players should keep it up their innovation and quality products up to standards. Once you can make it as a global product so it will become a globally available and make huge profit based on current Foreign exchange rates.

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The Oligopoly Market: Characteristics and Features. (2021, Apr 26). Retrieved from https://studymoose.com/the-oligopoly-market-characteristics-and-features-essay

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