Discuss various aspects and features of monopoly, duopoly and oligopolies in an Australian context.
The Australian consumer market has evolved and developed into a vast economic stretch in the last few decades. The various entities included within the aforementioned are marketing structures, public organisations and various industries. The overall structure of the market is taken as one of the major determinants of the Australian economy. The aspects of oligopoly, duopoly and monopoly are dependent on the very concept of the market structure. The main focus of this report has been on the aspects and features of monopoly, duopoly and oligopolies in an Australian context, so as to be able to develop a better idea on the intricacies and details of the national economy of the said country.
The discrimination and classification of the various characteristics of the key market structures are generally done on the basis of the intensity of the competing entities, strategies related to pricing and the overall implications of the performances. The important market structures have been observed to be mostly involved with the sizes of the firms, seller amounts and the barriers to market entry. The strategies of pricing are involved with the market size and have been observed to have a certain influence on the targeted customer markets as well.
The marketing scenario in Australia has witnessed a severe shift in the situation in an economic context, especially compared to the situation of a few years ago. The Australian market growth has been attributed to two main reasons, which form the basis of the two major schools of thought in this regard. The first train of thoughts maintains the belief that the marketing growth is dependent on the competitive nature of the market in the first place. In contrast, the second school of thought states that the growth is a result of the liberal nature of the economy, coupled with the overall increase in the concentration and stock of wealth. The basic meaning of monopoly is that one dominant entity conducts its business in a way where it dominates the entire market. Similarly, duopoly, derived from the word ‘duo’ refers to a situation where the number of dominating entities is two, with both sharing equal marketing share equity and managing to occupy a similar position in the financial context. Oligopoly, on the other hand, refers to the situation where a diverse range and size of businesses share the dominant role in the market (Bednall et al. 2013).
The Australian market has observed growth in several sectors, such as telecommunication, agricultural businesses, digital social media branches and the healthcare industry. The rise and rapid growth of all of these sectors in a simultaneous manner have prevented the establishment of the dominance of one or two specific financial entities. Thus, the Australian marketing scenario has been firmly established as an oligopolistic one, with many financial entities together comprising the major portion of the overall market. This state of the market has encouraged financial, technological and economic growths in a steady and fairly rapid manner. Limiting of the monopolistic marketing power and encouraging rival companies to compete on an even footing has also led to the establishment of this state of the market in Australia (Muhammad & Scrimgeour, 2014). Deposit market banking shares have been observed to have increased to around 50% in the last few decades owing to the establishment of the aforementioned marketing scenario.
The monopoly in a market limits the certain raise and benefits of the catered revenue within a target market. However, the presence of a temporary market tends to induce fluctuations into the economy of the concerned country. In case of Australian monopolies, there are reports made for the effectiveness catered by every monopoly and their respective firm of business. There are several implications in terms of monopolies. These approaches further tend to be assumed in terms of profound market economies that change in a dynamic market. However, on the contrary, the current economy of the prevailing market in Australia the role-played by the existing government is very effective and vital in terms of theory interventions (Chung et al. 2016). The government of Australia, in order to manage the monopolies in an efficient manner, caters different marginal returns as per every social contribution made by the type of the business. In addition to the above discussion, there is a different fundamental concept being highlighted that supports the efficiency and fairness of the activities that are further within an organisation. The following is the figure that outlines a rough e-commerce market structure that would further help the reader to analyses the area of concern within a monopoly business.
Figure 1: Market Structure
(Source: Chung et al. 2016)
As commented by (Bowers & Heaton, 2013), there are different cases of exploitation that are further highlighted in the economic business. However, in such cases, the economic exploitations of large companies always affect the prevailing government and the activities that are structured by them. Moreover, the rationale of the values returned by an organization on their catered investments always tends to disapprove the laissez-faire leadership and the overall control catered by them. As suggested by (Hernandez, 2015), the economic exploitation further tends to impact more on the rapid increase of the economy of the concerned country. As per the selected topic, the conversation deals with the country of Australia, thus, the entrepreneurs along with the small-scale business person would always get affected in a negative manner. In this, case, the country and their responsible government must take initiative to foster the scope and opportunities of a small scale business firms and the entrepreneurs. The motivation catered by an individual must always stay growing. Therefore, the ‘laissez-faire market approach of leadership is suitable for the markets being catered across the Australian cities. The above-mentioned approach further allows the new and diversified sellers to structure their strategies as per the demand of their individual business type and nature. Moreover, the appropriate business policies can also be sustained by the fluctuating demand of the customers.
From the aforementioned information, it can further be concluded that the activities catered by an individual firm or market always results to cater some of the effects at a global level. Moreover, the sovereignty of every customer is marked in order to maintain the business ethics and authenticity. The current business situation of the Australian market, make all possible efforts to motivate the entrepreneurs and small scale business persons. Therefore, the pricing method has fur6ther been modulated in order to allow the new marketers to work in motivation. Thus, by following the market structure of the Australian market, a general concept in regards to the current flow of market share and business can be analysed by the new beginners and their business in Australia.