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Stratford University Firms Strengths to Enter the Market Discussion


An oligopoly is characterized by a  relatively small number of firms offering a similar product or service.  Oligopoly products may be branded, as in soft drinks, cereals, and  athletic shoes, or unbranded, as in crude oil, aluminum, and cement. The  main distinction of oligopoly is that the number of firms is small  enough that actions by any individual firm on price, output, product  style, quality, introduction of new models, and terms of sale has an  impact on the sales of other firms in the industry. Review the Table  12.1 (pg. 416), select a dominant single firm, duopoly firm, and  triopoly firm and discuss if you foresee any weaknesses in the three  firms you selected that would allow entrance into this market or if one  of the firm has enough strength to become a monopoly?


The invisible hand ensure that the price, supply, and demand are highly responsive to each other. However, some market structures affect its functionality due to changes in number of sellers or buyers. McGuigan, Moyer, & Harris (2017) discovered that some of these structures include monopolistic competition, oligopoly, and monopoly. They stated that oligopoly markets have few sellers and many buyers (McGuigan et al., 2017). However, monopoly industries comprise single buyer who controls the marker.

The authors offered different types of oligopoly firms, where we have dominant single company like Adidas and duopoly like Nokia organization that offers handsets. Moreover, an example of triopoly firm is Dell Company which operates with IBM and Cisco in production of servers (McGuigan et al., 2017). The three types of companies have applied different strategies to improve their oligopoly power. They measures reduce number of sellers and improve product homogeneity. However, failure to uphold these strategies might eliminate the barriers and allow more sellers into the market.

Doz (2017) proves that one of the companies likely to lose its oligopoly power is Nokia. The organization has made several strategic decisions that led to its failure. It maintained its production on hardware production, while the consumers had shifted their consumption to software. The management should have effectively responded to the market needs and adopted application ecosystems to exploit the opportunity. Its challenges started in the year 2001 after leadership wrangles affected business operations. The author noted that the management also promoted mid-level executives to senior positions. The new officials were inexperienced and could not appropriately implement the matrix structure of leadership (Doz, 2017). Therefore, the challenges can foster rise of new organizations due to Nokia’s weakening market power.

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The present scenario is working on a discussion board, which is an Oligopolistic industry. As an instance to work on this, I have reviewed the table provided where different oligopoly products are done based on the domains. Table 12.1 is reviewed where we have to select the firms from three different sections provided as part of the industry-based products. The single dominant firm that I have selected is hand calculators formed in 2009 by two main brands such as Casio and Texas Instruments. Moreover, in the section on Duopoly firms, I have selected Batteries from 2005 with known brands such as Duracell, Energizer, and Rayovac (Jackson, 2015). From the section of triopoly firms, servers serve as the best entity to be chosen as an example of the era of productivity of the business. Different types of servers in bushes have emerged from 2014, such as Cisco, Dell, Hewlett-Packard, and IBM.

In the single dominant form I have selected, there is a weakness where the calculators at the initial basis did not work, and even they lose their vitality after a few due to battery. This dependency, however, serves as a weakness (Dhalla, & Oliver, 2013). The batteries from the duopoly firms usually do not have any weak areas, but the accuracy and the efficiency need to emerge on a greater basis. Whereas the triopoly firms such as servers are now used everywhere, the rapid utility of practical concerns through cloud technology has made the data stored better, hence providing the basic functionality that is often needed. Usually, at the initial stages, each possesses the characteristic to excel in the business market, but increasing the services offered by these types of products and increasing technology has made the requirement more precise. From the three areas chosen, the chance for the type of firm to be strengthened to become a monopoly is using the battery.

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