Business Oligopoly: The Australian Commonwealth Bank

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An ‘Oligopoly’ is a market form in which a Business or Industry is directed by a minor quantity of sellers also know as (Oligopolists)(2). Oligopolies can result in numerous forms of collusion between any of the dominating markets, which may reduce the amount competition therefore it leads to higher prices for buyers. The banking system is liquid and highly regarded in the Australian Financial sector. Over the past 10 years the four major banks in Australia on numerous occasions how shown just how far they are willing to go in becoming the most successful bank. In recent times, the very well know Commonwealth Bank is now the second largest Australian registered establishment on the Australian Securities Exchange (ASX) as of January 2008. Also noting that the COM Bank made a Market Capitalisation of AU79.86 billion at the end of the financial year (June 2011). (1) Rank Company Market capitalisation 1 Commonwealth Bank A$79.86 billion 2 Westpac Banking Corporation A$65.62 billion 3 Australia and New Zealand Banking Group A$56.25 billion 4 National Australia Bank A$54.54 billion Over...

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