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Examination of an Oligopoly for Profit Company

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Examination of an oligopoly for profit company An oligopoly market setup is where there exist few sellers and producers. Oligopolistic markets exist when firms producing similar products enter into legal or illegal agreements to curtail entrance of other competitors so as have an upper hand to control production and pricing. Emergence of oligopolistic markets has slowly replaced monopolistic one’s due to coming up of similar firms producing and selling similar products. To curtail competition these firms merge or collude with emerging companies to control market prices, making oligopoly the modern day monopoly.

Verizon’s Inc cell phone department is no different from the three giant U.S.A based telecommunication companies that is T-mobile, AT&T and Sprint. To dominate the market structure Verizon’ cell phone segment has continued to produce and sell uniquely branded products and packages, for it’s current the sole online seller of the iPhone 4s cell phone. Verizon’s cell phone department uses non-pricing competition to avoid self defeating outcomes when pursuing large scale profits. This method is used by the telecommunications in the U.S.A to remain relevant in the market (Mazzeo, Michael 2012 ).

Brand loyalty in oligopolistic markets has a major role player when maintaining a customer base and attracting new customers. Verizon has devised various loyalty products to attract more subscribers and maintain the existing customer base. These discounts include; nationwide loyalty family plan, $60 loyalty plan and nationwide loyalty 50 anytime minutes. The impact of these loyalty discounts on an oligopoly market is customer retention and attraction.

Verizon cell phone department has a trade in trade up smart phone sale online choice on its online shop. Giving up…...

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