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25 November, 21:15

Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you've seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer.

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  1. 25 November, 21:35
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    First of all we need to know the concept of Oligopoly Market. An Oligopoly Market is a firm structure in which many firms are present in the same industry but only few or one or two firms dominate.

    So I will take example of Khaadi, which is a brand in Pakistan in the textile industry. There are a lot of other textile companies in there but Khaadi contributes the highest share in the market. The reason that Khaadi fits into the Oligopoly Market structure is its market share and the differentiated products in terms of stitching and sewing. Hand made products of Khaadi gives it an edge.

    There are many ads of Khaadi being on aired on the television and the print media. There are a lot of billboards and hoardings of models wearing Khaadi's brand.

    The interdependence between Khaadi and other rival firms is, they have both stitched and unstitched variety of fabric, Price range for all the competing firms are almost same but Khaadi has always an edge of being the provider of hand made fabric.
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