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.
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| =) |
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| 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.
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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.
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Of Reference
Good choice of choosing the mainstream cinemas for this topic..it is coherent.
ReplyDelete@Bluebell : Thanks.
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