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Complete 6 pages APA formatted article: Oligopolistic Market Structure. For instance, in France, the Air France dominates in the airline services in the region but there are still other small firms th
Complete 6 pages APA formatted article: Oligopolistic Market Structure. For instance, in France, the Air France dominates in the airline services in the region but there are still other small firms that provide the same services that still survive in the region, hence, results in the creation of oligopoly.
The emergence of oligopolistic market structure is important to the organizations that benefit from the process in various ways. These importances that are realised are triggered through the existence of different characteristics that the presence and the practice of oligopolistic market structure possess. Consequently, some of the characteristics of oligopolistic market structure include: Interdependence, which is the ability of various organizations that involves in the process of oligopoly, have the opportunity of making their own decision (Tolentino 2012). Therefore, through the presence of oligopoly in the market, some of the few organizations have the power to control the market behaviour in terms of the quality of the production, change in prices and technological advances in relation to the kind of products and services provided to the available clients. Hence, through these organizations with the opportunity to change the behaviour of the market, they also trigger changes in the operation of other small organizations in the market in terms of their operation and prices charged for the services provided.
Some of the few organization in the market that are in the favour of oligopoly within any given market locality have the power and courage of approaching the marketing process with the chance to maximize their sales for better profit realization. Therefore, through this, it develops another characteristic of the oligopoly of the importance of advertising and selling costs of the organizations involves (Scholasticus 2010). So, for these organizations to maintain their position in the market there is need for constant advertisement and promotion of their services in the market, which is important in the attraction of many customers towards the services provided. Another characteristic of oligopoly is the group behaviour, which states that the behaviour of the few organizations in the market that benefits from oligopoly may be termed as independent as they are in the group. For instance, they may decide to enact some changes in their operation towards the realization of better profit. Therefore, such moves may be valid or invalid depending on the results they yield.
