Advantages Of Oligopolistic Market
From the viewpoint of the customer, there are some advantages of buying a product under oligopolistic market. Firstly, customers may have many choices. Oligopolies sell various branded goods because of the characteristics of imperfect competition. One of the characteristics of oligopoly is non-price competition. It is a less risky strategy. It includes branding and advertising. For example, Air Asia 's non-price competitions include flyer programs, flight schedules, in-flight service, online services, and promotional expenditures (such as advertising, sales promotions, coupons, free gifts or special orders). Sales promotions like Matta Fair, Air Asia provide many advantages such as vouchers, discounts, and buy one get one free. Those benefits can build a good relationship with the customer because they like to pay less and get many benefits to purchase products and services. Furthermore, customers may find lower prices or higher discounts with a small number of firms in the oligopolistic market. The others will also cut prices to prevent losing their market share when a business started to cut down its price. Firms might have to sacrifice some profits in order to keep customers or reduce the rivals while lower prices to benefit consumers. For example, customers can find discounted air fares which allow them to enjoy the best flight deals with Air Asia. Sometimes Air Asia also issues free tickets, offers free seats or super low price ticket during the non-peak season and
Swot Analysis Of Air Canada
1235 Words | 5 PagesFurthermore, Executive Pod, International Business class, Economy class, North America economy class are some of the finest examples of services offered to different target market by Air Canada (Air Canada, 2018). Price: Air Canada assure the consumer 's that it 's price the best in the region as it states, "Stop searching far and wide. You’ll always find the lowest Air Canada prices right here on aircanada.com. Air Canada along the way has set itself as brand that is focused on its consumer 's affordability aspect. With its pricing guaranteed approach, the Airline can draw consumers to travel with airline with faith that they have spend their dollar in a smart
Springfield Nor Easters Case Summary
1211 Words | 5 PagesTicket prices and entertainment must be attractive in order to sell tickets, a key component to the success of the
Monopolies In Andrew Carnegie's Steel Industry
308 Words | 2 PagesA monopoly is atrocious because it allows one large company to take over selling a product or service, so this gives them an advantage over other companies that sell the same product. Monopolies aren’t a benefit for the economy for various reasons some include price-fixing, setting a price regardless of demand because the consumer has no other choice but to buy that product,
Analysis Of 'What The Dog Saw'
1177 Words | 5 PagesEssay The “competitiveness secret” Why the companies change the packaging to sell the same product? Why similar products, but with different brands are perceived as different? If the consumer perceives a product as different from the others, the company that sells this product, has a competitive advantage from the other companies. And if a company sells a particular product, it will increase its profits.
Market Revolution Pros And Cons
1236 Words | 5 PagesThe market revolution, which started in 1815, transformed worker lives, and improved the nation vastly; although it also dropped the economy as well. The traditional market, which was based upon power generated by animals and water, was slow in activities such as transportation. The growing nation underwent peace, which then catalyzed the reform of the organization of the economy. As such, transportation was heavily improved upon, along with manufacturing, banking, and commercial law. However, there were also two panics during the time that occurred that led to many Americans who were anxious and uncertain about working in the country.
Airways And American Airlines Merger Case Study
785 Words | 4 PagesMillions of people rely on the airline industry to travel quickly and efficiently between cities in the United states and throughout the world. Since 1978 where, when laws were put in place to promote competition in the market, the nation has relied on competition among airlines to promote affordability, innovation and make service improvements. The constant improvement of airlines and airplanes would in theory lead to lower prices for consumers. In recent years, however, the major airlines have raised some of the fares and the quality of the service has decreased. Competition is essential in any market as it avoids a high market concentration which consequently almost leads to higher ticket prices to be cheaper and always causes prices to increase and consumer surplus which is defined as the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay to decrease.
The Perfect Monopoly Market
2728 Words | 11 PagesAs such the seller is at the liberty to quote the price he feels right. Most of the times the seller charges higher price for the product as he knows his products are produced exclusively by him. • Consumer exploitation: as there is very little or no completion in a monopolist market, consumers tends to get exploited in terms of higher price, substandard or low quality goods etc. since the consumers have no option but to buy the products offered by the seller. • Customer dissatisfaction: higher price for the product, low quality goods or services, lack of choice among products leaves the customers dissatisfied.
Advantages Of Multilateral Trade
1446 Words | 6 PagesQUESTION1 MULTILATERAL APPROACH TO INTERNATIONAL TRADE AS ADVOCATED BY THE WTO INTRODUCTION A multilateral approach is a treaty that refers to trade between numerous countries. It was the main activity associated with the 1947 GATT which took place during international conferences, whereby legislators came together to reject out and reach agreement on numerous trade issues. In total, there were 8 conferences under the former GATT. The first 6 of these conferences, ending with the Kennedy Round in 1967, concentrated mainly on tariff allowances.
Price Discrimination In Hotel Industry
777 Words | 4 PagesIn short, lower prices are offered to consumers, who might not be able to afford a higher price, thus attracting more visitors and raising the profits. Let’s take a look at the graph below. Output is Y number of hotel rooms booked at price P. D1 is demanded by adults, D2 – by seniors. If suppliers charge price P1 for all the rooms, they are only targeting one segment and quantity sold will be Y1. However, by charging a different price P2 to different customers, suppliers now target two segments, so the total revenue will now be P1*Y1+P2*Y2, which is obviously a better option for suppliers than just
Apple Business Ethics Case Study
1848 Words | 8 PagesThe oligopoly market is set up in a way so that competitors can survive because each is unique and there are so few competitors that they are virtually indispensable even if some ethics atrocity
Amazon Customer Analysis
829 Words | 4 Pages3.3 Customers and Competitors Customers Amazon customers consist of upper & middle class social groups who have inclination towards using E-commerce portals and are comfortable with online shopping. Majority of the customers are professionals or businessmen who are busy with their business/Job & find it convenient to purchase anything online rather than visiting the physical outlet in order to save time & money. Furthermore, the customers might also be the ones who are searching for deals.
Fendi Competitive Advantage
1100 Words | 5 PagesThe companies in today industry serve a huge competitiveness. Current competitors take advantage of the demands from consumers to earn high profit margins. Fendi is known as a rich brand heritage and is the first global group in luxury product. They are widely recognized for its leathers, furs, watches and bags.
Amazon Marketing Strategy
1532 Words | 7 Pages1. Primary Target-Market — main consuming group/Secondary Target-Market —additional sales potential Amazon’s target customers are people who have access to the internet and have financial paying tools such as credit card, debit card, paypal etc. futher, the firm’s clients do not stay within the united states only. Amazon has reached its hand to online customers in other continents. Further the company’s prime program seems to appeal more to older shoppers than the younger ones since data shows that individuals whose age 40 or more are more loyal to the service than people whose age is less than 40.
Competitive Advantages Of Mr Price
835 Words | 4 PagesMr Price is known to be the best retail company that has a wide range of products sold in South Africa. They were established in 1885, they have been trading on the JSE since 1952. There are Mr Price stores located all around Africa, such as Botswana, Kenya, Tanzania, Malawi, Namibia and of course in South Africa. The founders Laurie Chiappini and Stewart Cohen opened the very first Mr Price in 1985 in Durban.
Advantages Of Capitalism
906 Words | 4 PagesCapitalism is defined not just as an economic system described by private ownership of capital goods but also by being a system of prosperity formation, modernization, and social modification that has brought to billions of people wealth that was inconceivable to former generations. Capitalism sets human originality to the provision of humankind by regarding and inspiring entrepreneurial innovation, that indefinable feature that clarifies the alteration between the lives of the people today, and the people back then. Capitalism promotes political freedom, alleviation of poverty and leads to economic growth. To begin, the first advantage that exists in capitalism is the development of political freedom.
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