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Tuesday, July 9, 2013

OLIGOPOLY

Oligopoly is a type of market structures, where there are few large of sellers competing in the market. The product of producer can be divided into two areas, which are homogenous and differentiated products.
Cinema is a square place that produces movie film, normally it is call movie theater.



GSC cinema is promoting a birthday voucher to GSC members. On the member's birthday month they will receive a free movie ticket and 20% discount on their meal at Glitters Café. Glitters Café is a personal café that is run by GSC, they serve a variety of delicious food there.  Apply for a member card to get a promotion or voucher in GSC cinema.


On the other hand, TGV cinema is promoting “Monster University Combo”. “Monster University Combo” is a limited edition set which includes a tumbler of soft drink and a regular pop-corn. TGV also promote cheaper ticket price on standard seat for students and seniors on weekdays and shows before 6pm. Moreover, during weekends and holidays before 12pm, TGV discounts over 30% per ticket, and  it is open for public.

=)
REALLY?!!!



     
For MBO cinema, it is promotional giveaways such as free screening for specific movies but its is only open for members and only at certain MBO branch only. MBO is giving out poster of the famous movie “Despicable Me 2” for everyone who purchases two movie tickets.
Firms cannot control over price in the market, because each firms plan their own promotion to survive. All the product related firms must have mutual interdependence to the price. Each producer plan to defeat others in the market, so as to promote themselves.

There is a high entry barrier in the market because of the difficulties to enter the market. Compete or cooperate is the only dilemma that oligopoly faced. We cannot merge cinemas to a cinema. Imagine if we merge all the cinema, the cinema owner will rise or fall their price casual. But, cinemas can form a cartel. A cartel is an illegal group of firms acting together to limit output, raise price, and increase profit. Those firms which are in oligopoly market can face the temptation to form a cartel, however cartels often break down.
 Thus, non-price competition is the other way that the firms fighting for. About non-price competition it involved brand loyalty, advertisement, marketing, special offer, packaging and after sales service.
In my opinion, oligopoly is a stable competing in the market, it doesn’t look like monopoly the only firm control the market, and perfect competition many firms competing in the market. We can only focus on those firms competing in the market and their strategies to survive. Because of lack of cooperative, there are many ways of competing in the firms. People can live in an interesting world and no more boring life due to firms competing.   

List Of Reference

2 comments:

  1. Good choice of choosing the mainstream cinemas for this topic..it is coherent.

    ReplyDelete