Indian Beer Industry - Oligopoly

Topics: Supply and demand, Barriers to entry, Demand curve Pages: 3 (546 words) Published: March 25, 2013
Economies of scale:
The increase in efficiency of production as the number of goods being produced increases.

Government policies:
restrictions on advertising leading to surrogate ADVT., polic ies which make it difficult for expansion of companies.

Access to distribution channels:
cost of distribution in this industry needs to be looked at logically. If firms in this industry carries significant costs from distribution which are then reflected in their prices to customers, the customers will choose the competition.

Suppliers product differentiation/ SWITCHING COSTS OF BUYERS: the development of new products that may create a new demand or create repeat customers is always a key success when in a competition.

Exit barriers:
Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, huge exit costs, such as asset write-offs and closure costs, and inter-related businesses, making it infeasible to sell a part of it. Another common barrier to exit is loss of customer goodwill.   

Buyers switching costs:
in order to remain competitive, companies in this sector must make their products readily available and accessible to their customers or they will go with the competition.

Advertising:
when everyone’s advertising in the industry is d same, its easy for companies to get lost in the mix. However by staying on top wid interesting and new ways to promote a product, people remember that product better.

Importance of a specific product to a customer:
An imp competitive advantage that ensures that customers will be less likely to switch to another company for a similar product.

BUYERS USE OF MULTIPLE SOURCES:
purchasers regarding the selection of suppliers (sources), e.g. the use of a single or two or more (multiple) sources. {Considers the justification of either method in the context of reducing the uncertainty (risk) of a particular purchase. Illustrates the marketers view of sourcing and...
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