Is the Watch Industry dominated by an Oligopoly*, which is beneficial E

Is the bring in manufacturing dominated by an Oligopoly*, which is safeto both firms and consumers?*= See rubric for meanings. opening==========I believe that the remain fabrication is dominated by an oligopoly, whichis beneficial to both firms and consumers. The heart firms be bothprice makers*, which is unsloped for the watch firms, and price takers*,which is good for consumers.AimIn this investigation I shall be examining the watch perseverance. I go outuse a Mintel melodic theme of the watch industry produced in 1995 andinformation worksheets to test my hypothesis.Findings and Application of Theories quintuple companies, or the C5 ratio, dominate the watch industry. They score 40% of the foodstuff sh be* (see fig.1.). Zeon Ltd. is the marketleader*. there gift been no recent take-overs or mergers in the watchindustry, so the market leadership is slight. The growth of theindustry has been thorough*. GRAPHThis representation makes the watch industry an oligopoly, as argueto cosmos perfect competition*, imperfect competition, or a monopoly*.There are a number of reasons why the watch industry is an oligopoly. first off are thither barriers to first appearance* as opposed to free entry*. unrivaledbarrier to entry for other prospective watch manufacturers iseconomies of surpass*. The larger, more than established firms have a numberof cost advantages, such as be able to buy raw materials in mess orborrow large sums of money. Their resultion costs are consequentlycheaper and at that placefore they will probably be able to sell their watchesat a commencementer price than smaller, newer firms. Another barrier to entryis branding. exclusively of the firms in the oligopoly have very establishednames in the... ...a variety/ sumptuousness item. The success of this strategy depends on maintaining number one costs at low volume on a high quality learn with a couple of(prenominal) or no competitors.- Pric e Makers In a monopoly blank space where there is only one, or very few suppliers. The industry arse execute its prices at whatever level they want without the chance of being tenderloin by competition (because there is none).- Price Takers In an industry where there is a lot of competition (ideally perfect competition), the sellers must have the prices of their product low in order to sell them. If they did not have low enough prices, customers would go elsewhere as there will be many substitutes that are cheaper.Bibliography1) The Watch Industry Mintel Report- 1995 (obtained from Sheffield Hallam Universitys Adsetts Centre)2) Business and economic science socio-economic class worksheets Is the Watch Industry dominated by an Oligopoly*, which is beneficial EIs the Watch Industry dominated by an Oligopoly*, which is beneficialto both firms and consumers?*= See glossary for meanings.Hypothesis==========I believe that the watch industry is dominated by an oligopoly, whichis beneficial to both firms and consumers. The watch firms are bothprice makers*, which is good for the watch firms, and price takers*,which is good for consumers.AimIn this investigation I shall be examining the watch industry. I willuse a Mintel report of the watch industry produced in 1995 andinformation worksheets to test my hypothesis.Findings and Application of TheoriesFive companies, or the C5 ratio, dominate the watch industry. Theyhave 40% of the market mete out* (see fig.1.). Zeon Ltd. is the marketleader*. There have been no recent take-overs or mergers in the watchindustry, so the market leadership is slight. The growth of theindustry has been organic*. GRAPHThis representation makes the watch industry an oligopoly, as opposedto being perfect competition*, imperfect competition, or a monopoly*.There are a number of reasons why the watch industry is an oligopoly.Firstly are there barriers to entry* as opposed to free entry* . Onebarrier to entry for other prospective watch manufacturers iseconomies of scale*. The larger, more established firms have a numberof cost advantages, such as being able to buy raw materials in bulk orborrow large sums of money. Their production costs are and socheaper and therefore they will probably be able to sell their watchesat a lower price than smaller, newer firms. Another barrier to entryis branding. All of the firms in the oligopoly have very establishednames in the... ...a novelty/ luxury item. The success of this strategy depends on maintaining low costs at low volume on a high quality image with few or no competitors.- Price Makers In a monopoly situation where there is only one, or very few suppliers. The industry can set its prices at whatever level they want without the chance of being undercut by competition (because there is none).- Price Takers In an industry where there is a lot of competition (ideally perfect competition), the sellers must have the p rices of their product low in order to sell them. If they did not have low enough prices, customers would go elsewhere as there will be many substitutes that are cheaper.Bibliography1) The Watch Industry Mintel Report- 1995 (obtained from Sheffield Hallam Universitys Adsetts Centre)2) Business and Economics class worksheets