Ous Said..

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enefit from a plurality of producers operating in a very competitive market. The OECD Competition Committee debated oligopolies in 1999. - Extracts. A formal definition of oligopoly is: “...a market structure with a small number of sellers - small enough to require each seller to take into account its rivals’current actions and likely future responses to its actions.” - Recognised interdependence is the hallmark of oligopoly. Kantzenbach and Kruse (1987, 10) offer a more technical definition asserting that an oligopoly exists, "... if the variation of a behavioural parameter by one of a group of competing firms leads to a perceptible change in selling conditions for the other competing firms…, thus causing them...to respond by…show more content…
It is also and excellent example of how not to manage your CHANNELS. What do you think is going to happen to the channels very soon? Will they defect to a more lucrative offer by Toyota or Perodua? Will they ask the government to bail them out - since most of the channels are owned by quite illustrious Datuks and Tan Sri's. And what will happen to the many second hand car dealers in the market? Will they have to bear the brunt of the actions taken by the new car dealers market? Overall - 2008 is just around the corner, this is the time when the extension granted to PROTON for AFTA comes to an end and the market goes thru another shake-up. The future is very difficult to predict now that regulations are about to be loosened. Here is a possible scenario of the future: 2008 - tariffs are brought down to 5% - Industry sales slump to the lowest point in history. PROTON management scrambles to do last minute methods to halt declining sales -massive promotion and discounting campaign -Trade in at the highest rates Mid 2008 Most of the channels for Proton bail out. Market share declines to 15%. Surge in sales for Honda and Toyota who now can price much lower. PERODUA launches 1.5 and 1.6 DVVT Sedan for thier drivers to upgrade - keeping thier share of the market. GM and VW try to break in to Malaysian market but have a hard time End 2008 - Share prices for Proton
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