Competition Of Competition And Market Concentration Essay
Competition in business can vary from one organization to another, depending upon individual preference and the nature of the industry. In economics, market structure denotes those firms who produce homogenous goods. On the market structure spectrum, an organization starts with perfect competition on one end and makes its way towards monopoly on the other extreme end. In the middle of these two contrasting market structure types, we have duopoly, oligopoly and monopolistic competition based on the level of competition and market concentration. Since perfect competition is a hypothetical phenomenon organizations shall not indulge in this. Companies and organizations tend to move from monopolistic competition and make their way towards monopoly to achieve maximum resource efficiency and competitive advantage. However, there is a need to understand that in certain industries having a monopoly is restricted by the government in order to protect the consumers from any unfair disadvantage. Multinationals and organizations usually tend to keep themselves restricted to monopolistic competition or depending upon the mechanics of the industry, switch to either a duopoly or oligopoly. In Australia it can be observed as a general trend depicting the market players to lean towards Oligopoly in contrast to duopoly or monopolistic competition. However, with the introduction of stronger, more stringent laws act as a barrier to entry to new entrants.
The major focus…