Ous Said..

An oligopoly is a market structure that is composed of only a handful of companies that together have complete control over the sale of certain goods or services. In contrast, a “monopoly” exists when a one particular company is the only supplier of goods or services in a certain market. Examples of monopolies that we are familiar with include Ameren, the company that supplies our electricity and natural gas, and Illinois American Water, the company that provides our water.

Oligopoly is a market structure in which a few firms dominate the market (Jocelyn Blink & Ian Dorton, 2012). The market may have a large number of firms or just a few, but the important idea is that the industry’s output is shared by a small number of firms. It is possible for oligopolistic industries to differ, in the sense that some industries would produce the same kind of products, where the product is practically the same and only the companies name is different. On the other hand, there are also industries that produce completely different product and also ones that produce products that are only a bit different from each other, but these firms do tend to spend most of their budgets to advertise their products (Jocelyn Blink & Ian Dorton, 2012). There are a few main characterises of firms that operate as oligopolies these include:

Oligopolies are a type of market structure evident in Australia, which is comprised of 2 or more firms having a significant share of the market. In an oligopoly the few firms sell similar but differentiated or homogenous products and is characterised by a large number of buyers making it a form of imperfect competition. This market structure is evident through the Big Four Banks, Phone Industry - Vodafone, Optus and Telstra.

Oligopolies have been around ever since there is trade. However, it has only recently gained grounds in this age of globalisation. Never before has oligopolistic competition been so fiercely contested across so many industries.

The structure of a market is defined by the number of firms in the market, the existence or otherwise of barriers to entry of new firms, and the interdependence among firms in determining pricing and output to maximize profits. Retail sales are indicators of microeconomic conditions presented in a given area at a particular place in time. Since Sam Walton opened his first Wal-Mart store, Wal-Mart has been making ripples throughout the micro economies of America. Wal-Mart’s market structure is typical of most of our nation’s largest corporations in that they are an oligopoly (Brown, 2010). According to Colander (2010), “An oligopoly is a market structure in which there are only a few firms and

The oligopoly theory is based on the importance of the number of firms in an industry as well as on the nature of a product. In oligopoly, the more similar or homogenous product of different firms is, the greater is awareness of the competitors. In all oligopolistic markets several sellers represent a substantial proportion of total sales. The fewness of the firms is a key characteristic of oligopoly. As a result of the limited amount of companies in the oligopoly industry, the main problem is hidden in the recognition of mutual dependence or interdependence of companies (Lipczynski et al.,

The first concept I am going to discuss is an oligopoly. There are several characteristics that make up an oligopoly. One characteristic is that there are many firms in the industry but only a few firms that make up the majority of the market share. In the United States soda market, three firms (Coca-Cola, Pepsi, and Dr. Pepper Snapple Group) make up almost ninety percent of the market (Schiller, 246). Another characteristic is that in an oligopoly, the oligopolists have substantial influence over price (though one oligopolist is usually the price leader). This market power is determined by the number of producers in the industry, the

It has an additional manufacturing plant at Tanjung Malim, Perak. The company was set up on May 7 1983 as the sole national car company until Perodua came in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad (National Automobile Private Limited). In January 2012, DRB-HICOM take over the industry in transaction amounting RM1.2 billion. Proton has been used in Southeast Asia, China, Australia, Middle East, United Kingdom and South Africa. The Executive Chairman is Dr. Mahathir Bin Mohamad. The number of workers is almost 12 000 and the website that we can visit is (Proton Home, 2015).

According to Colander (2010), “An oligopoly is a market structure in which there are only a few firms and these firms explicitly take other firms’ likely response into account when making decisions.” Furthermore, given that

Over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward.

Monopoly and Oligopoly are market structures in economics which are deemed to exercise market power within their characteristics in terms of market concentration and price determination.

This is because, in comparison of Proton and Perodua, Proton is the one who facing the biggest problem. According to New Straits Times on 30 March 2017, Proton have received soft loans from the government around RM1.5 billion, yet they cannot increase their production nor sales. On 2016, Proton sales volume was at 72,290 units, while Perodua recording sales volume of 207,110 units. Also in 2016, while Perodua's market share was at 40 per cent, Proton recorded only 14 per cent. Even its revenue has consistently dropped from RM7.7 billion in 2013 to 4.8 billion in financial year

The second problem that Malaysian Automotive Industry is government policies. For many years Proton has been one of the most important GLC’s in

With its lack of experiences in competing with other giant auto carmakers , Proton has been facing countless of losses. Proton has been losing market share year after year ever since the establishment of the policy . According to statistic within the first half of 2016 by the Malaysian Automotive Association , the market share has dropped to 13% on sales of 35, 727 units compared with a market share of 15.6% and 50,205 units sold in the previous corresponding period . In the Audited financial statement for financial year 2015 , the company’s net loss widened to RM 646.3 million from RM 461.6 million previously . Its distribution cost of RM260.7 million was more than its gross profit of RM147.9 million in 2015

Finally, to do the same in oligopoly we also need to understand the basic aspects of it. Oligopoly is the market share of several firms which together make a big influence to the price or other outcomes of a certain market, however the difference between monopoly and oligopoly is that in oligopoly firms do not operate independently, because then they could lose some of their customers to their competitors. That is why several dominant firms always try to cooperate together and sometimes they even make some secret agreements in order to maximize their profits. So, the dominant position in oligopoly is the market share of several dominant firms who have an ability to make big