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?

Answer 1

Answer

i purchases Dwe or Seven-up as a soft-drink. market for the same is oligopoly market and few firms are selling differentiated product with different taste and flavor. some are like Limca, spright thums-up, coca cola, maaza etc found under same industry with different product each has, they are interdependent to each other and react to each other product strategy and pricing policies. every oligopolist sell its product keeping other products in the mind and as we know most of the flavor they offer are same and that why they run commercial advertisement gain the market share, cost leadership they produce with lowest cost possible. many time i saw that they put some different taste and color of drink to attract the customer and they use different packaging, schemes and incentives to attract towards their product and services. they organize competition and give prizes in this way they attract customer make leadership position and handle price competition. even some time they offer scholarship to student this was done by Colgate toothpaste company to attract and gain the market share.