Oligopoly Case Study:
Oligopoly is the type of the structure of the market which is characterized with the extremely small number of the competing firms. If a company has managed to discover a new sector of the market and produces high-quality goods and services and has won respect and credibility of the customers, it has a chance to be the best one in its sector and become the example of oligopoly.
The brightest examples of oligopoly are such companies as BMW and Mercedes, which are considered to be the dominant producers of automobiles in the world and these two companies dictate the fashion and the style of the further models of automobiles. Customers all over the world believe in the quality of the automobiles produces by BMW and Mercedes and the companies have simply become the icons of this sector of the market. It is easy to recognize oligopoly due to the list of the specific qualities which define it.
First of all, it is a small number of the rival companies in the sector of the market. Then, it is extremely difficult to compete with the leading companies in oligopoly, because the standards and requirements are too high. Next, in order to survive and receive profit a company in oligopoly does not need to conduct differential policy and broaden the choice of its production. The most important fact is that the leading companies in the sector are connected somehow, because the decision of a single company influences the whole market, so all the decisions are discussed by all the leading companies.
Oligopoly is an important type of the market and every future economist and businessman should be aware of its function, its structure and mechanism of its work. A successful oligopoly case study should briefly explain the term oligopoly and present its key principles. After that a student is able to research the suggested problem of the case investigating the case site, collecting data in the Internet or at the library using only reliable and up-to-date sources. One will need to find out about the cause of the problem and analyzed its effect on the sector of the market or the fate of the chosen company under analysis. Finally, the student will have to conclude the paper wisely and suggesting the effective ways out of the problem.
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