What Is Oligopoly?

Superior Essays
1) Oligopoly:
Oligopoly is a type of market structure in which very few sellers or firms holds the majority of the market. Oligopoly is resulted from a wide range of collusions which makes the competition to be lower and makes high prices for consumers.
There is no specific limit for the number of firms but the number should be minimum. The actions of one firm will automatically effect the others firms. Examples:
Fuel retailing in the UK is lead by six leading suppliers. Those are Tesco, BP, Shell, Esso, Morrisons and Sainsbury.
Fixed Broadband service in the UK is also taken control by 4 suppliers . They are BT (32%), Sky (22%), Virgin Media (20%) and TalkTalk (14%).
Perfect competitive market:
Perfect
…show more content…
We am about to represent coca-cola in Indian oligopoly market.
An Oligopoly is a market where only few sellers take over the total market. The perfect competitive market is theoretical but the Oligopoly exists in real life . An example of Oligopoly is the Coca-cola soft drinks market(Zheng, 2013). This Oligopolies are differentiated by the type of products they produce. They may be similar or different products. The homogeneous products are produced by pure or standardized Oligopoly and different products are produced by differentiated Oligopoly(William and Allan 2011).
Coca-cola is one of the best manufacturers of soft drinks in the world. The company has been in a growth from the very starting. It 's soft drinks are sold over 2000 countries and it has more than 500 branches.

Fig. Coca-Cola Oligopoly Structure.
The Coca-cola and Pepsi are major competitors in the market. These two companies take over the major market. Both sell the same products i.e., soft

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