Marketing and Oligopoly Market

Definition of oligopoly Oligopoly foodstuff structure is a market with hardly a(prenominal) vender but large in size and their produce mark mathematical product whereby advertising is a rattling crucial element deep down the oligopoly market. Thus in the oligopoly market structure the competition between a rigid with an other(a) firm is very high because they are barely a fewer trafficker in the market and the price is very stable. 2. 0Characteristic of oligopoly market structure 2. 1 Difficult to entry Oligopoly market a very difficult to enter because they also need a spacious amount of capital and the expenses is very expensive.Apart from that they using a high technology in their product. Example of oligopoly market such as airlines, automobile, steel labor and oil industry. 2. 2 Similar or differentiate product In the oligopoly market sometimes they sell similar product such as oil from Saudi Arabia is the same oil in Malaysia and Thailand. For the differentiate pr oduct such as automobiles, steel industry, gas, and cell phone. 2. 3 Few seller and large in size Oligopoly market have few seller but they are very big in the economic scale leaf because in their production they produce they product in mass production.Firm that operates in the oligopoly structure can affect the market price the example of this lineament such as airlines, tobacco, and steel industry. 2. 4 Mutual interdependence These oligopoly market are very easily affected by the action of the other firm this means the action of the other firm will top effect to other firm because they are only a few seller thus the competition is very high. For example if one firm reduces they price the other firm will also have to deliver the goods the other firm in reducing they price.