Essay Famous 5 Entrepreneurs

1510 WordsMar 18, 20137 Pages
1 What is an oligopoly? An oligopoly is a business market that is controlled by only a small group of firms. As opposed to a monopoly (only one firm) or a duopoly (two firms) an oligopoly is defined by having three or more businesses involved. It could be described as a market with only a small amount of competition. The oligopoly relates to sellers within the market, not buyers, so the sales market would only be controlled by a small number of businesses. This usually means that a decision or financial step made by one company will directly affect the other companies in the market. A good example of an oligopoly would be the US wireless market. There are some advantages for oligopoly; The first and most obvious advantage of an…show more content…
vehicle sales will rise to more than 14 million in 2012, that’s a far cry from 17.3 million at the turn of the millennium. Last year’s U.S. sales figures might have been higher if not for the tsunami and earthquake in Japan and flooding in Thailand, which forced Toyota, Honda, and, to a lesser extent, Nissan to curtail production in virtually all of their assembly plants around the world. Auto sales growth is far more rapid in emerging nations such as China and India, with average annual sales gains since 2001 of 23 percent and 15 percent respectively. All of this should be good news for U.S. automakers, which have restructured their operations to be profitable at lower volumes in the U.S. General Motors, Ford, and Chrysler gained market share at the expense of the Japanese manufacturers, and the Detroit Three have now posted several quarters of consistently strong operating performance. Whether these improved earnings are short-lived will depend on a number of unknowns: * As their output returns to normal, will Japanese companies reclaim their market share? * Will the Detroit Three maintain their focus on new vehicle development and launches and continue to practice pricing discipline, which favors maximizing profits over volume or marketshare growth? * How will rapid introductions to the U.S. market of highly competitive new models from automakers around the globe, combined with slow growth, play out? How will automakers differentiate their vehicles and
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