Oligopoly Market Structure

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Running Head: Marketing Structures Toyota as an example of an oligopoly market structure Name: Institution: Instructor’s Name: Course code: Course Title: Contents Contents 2 Toyota as an example of an oligopoly market structure 3 1.0 INTRODUCTION 3 1.1 Terminologies of market structures 3 1.11 Perfect competition 4 1.12 Monopoly 4 1.13 Monopolistic competition 4 1.14 Oligopoly 4 2.0 THE TOYOTA COMPANY 5 2.1 Characteristics of an Oligopoly 6 2.2 Toyota Motor Company’s Kinked Demand Curve Model 7 2.3 Recommendations on pricing strategies 9 2.31 Formation of a cartel 9 2.32 The Dominant Firm model 10 3.0 CONCLUSION 11 4.0 REFERENCES 12 5.0 APPENDIX 13 Toyota as an example of an oligopoly market structure…show more content…
We will study the Toyota Company as a perfect example of an oligopolistic market structure. Toyota motors mission is to be the worldwide leader in customer value by creating a more prosperous society through vehicle manufacturing. Its vision statement is that Toyota will become the leader in availing the best value in automotives, to achieve long term stable growth in growth with the environment, the local community that it serves, the global economy and the and its stake holders. Toyota has new investment in factories in the US and in China which saw 2005 profits rise. They also have diversified range of products and a highly targeted marketing and commitment to lean manufacturing and quality. In 2003 Toyota pushed its competitor Ford into third position, hence becoming the World's second largest car manufacturer with over six million units. Toyota employs marketing techniques to identify and satisfy customer needs and invest heavily on customer relationships. The biggest strength of the company is that it is very strongly established in all the major countries to include about two hundred countries with many products for sale through their dealers. Their products are also very well diversified across all the major industries including transport, construction, defense and electronics in
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