Global Competitive Environment: Oligopoly Market and Sainsbury's

This report provides an analysis of the oligopoly market, defining its characteristics such as few sellers, interdependence, advertising, competition, and entry barriers. It examines the advantages and disadvantages of this market structure for both customers and businesses. The report focuses on Sainsbury's, a major player in the UK retail market, and explores its position within the oligopoly, highlighting its competitors like Tesco and Asda. It delves into Sainsbury's development, revenue, pricing strategies, and competitive positioning, emphasizing its focus on customer value. The report concludes by summarizing the key findings and the importance of understanding the oligopoly market dynamics for businesses like Sainsbury's.

Global Competitive
Environment
2.1-2.4

Table of Content
i
 Introduction
 Characteristics of Oligopoly Market
 Advantages
 Disadvantages
 Competitors
 Pricing Strategy
 Conclusion
 References

Introduction
 The Oligopoly market is described as those market
conditions where there are few sellers who are
selling differentiated or homogeneous goods.
 The firms who are selling their products are having
large market shares.
1

Characteristics of Oligopoly Market
• Few Sellers
• Interdependence
• Advertising
• Competition
• Entry and exit barriers

Few Sellers
• There are less sellers but customers are large in number who
are selling products.
• As the market place is dominated by few sellers so they are
having total;
• Control over the prices of products which they are selling to
their customers.

Interdependence
This is most vital feature of Oligopoly market as the sellers
have to focused on the pricing strategy which are adopted
by other rivalry.
There is high competition among the sellers because if one
firm change the price of their products then other firms

Advertising
• Under the situation of Oligopoly market each firm are
giving advertisement of their goods on regular basis.
• It is beneficial for them in order to attract customers who
will enhance their overall sales and profitability ratios.

Competition
• There is higher competition at market place because there are
only few sellers who are selling their products and there are
large number of buyers.
• If there is any action taken by one firms then it will have impact
on their rivalry business.

Entry and exit barriers
• The firms who wish to enter into oligopoly market can
easily take entry but they had to face some barriers while
taking entry.

Lack of Uniformity
• There is no uniformity among the firms who are selling
their goods at oligopoly market as all are having
different size because some are having their operation's
on large scales.

The advantages of Oligopoly market for
customers
The advantages of Oligopoly market for customers and
employees are described as:
•Higher profitability
•Simple choices
•Competitive Price
•Better information and Goods

The disadvantages of Oligopoly market
• Less Choices to customers
• Fixed pricing policy
• No fear of Competition