Phone Industry Analysis falls to Oligopoly Structure

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In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style. Market structure is when an industry has a number of firms making identical products. An industry’s market structure depends on the how many firms are in that in industry and how they will compete in the market. We can focus on those specific factors that will affect how it will change competition and also price. The types of market structure include oligopolies, monopolies, perfect competition and monopolistic competition. Here are the four basic market structures: •Perfect competition: This happens when lots of small firms compete against one another. These firms are in a very challenging industry to manufacture the socially optimum output level at a very small cost to the firm. •Monopoly: This is when a company that has no competition in its industry. It decreases output to drive prices up and therefore rise to its own profits. By doing so, it produces less than the socially optimal output level and manufactures at a substantial high cost than some other competitive firms. For example companies that are perceived as monopoly companies are the rail way and postal companies e.g. Scot rail and fed-ex. Companies like Scot rail use this to its advantage because a lot of the train go to the Glasgow and ... ... middle of paper ... ...s/default/files/cellular201009.pdf http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.197.345&rep=rep1&type=pdf http://www.opengardensblog.futuretext.com/archives/2013/01/2013-trends-and-how-to-analyse-the-industry-in-a-mobile-first-world.html Bibliography Philip M. Parker and Lars-Hendrik Röller. (1997). Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry. The RAND Journal of Economics. Vol. 28 (2), pp. 304-322 Peter O’Reilly. (26th May 2010). TELECOMMUNICATIONS. INDUSTRY GUIDE. 1 (1), 2,3. Janet Morrison (2011). The global business environment, meeting the challenges. 3rd ed. England, Hampshire : Palgrave Macmillian. 98,26,42 Worthington & Britton (2009). The Business Environment. 3rd ed. London: Prentice hall. pp. 102. Ofcom. (18 July 2012). Communications Market. Report 2012. 9 (1), 17, 279.

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