Hp Swot

Task 1

According to Rioga (2010) an oligopoly market structure is one where there are few enough firms to enable barriers to be erected against the entry of new firms. This market structure is almost similar to thus of the monopoly, but its not one business that controls the market it is a few. When ever a new business enters the market they suppliers the consumer with lower prices, and existing suppliers can not keep up, this is when the business takes the oligopoly.

The term perfect competition can also be described as pure competition. In this market structure there is a large amount of business that controls the market. In the market business sell more or less the same product, and if one firm increase its price, the consumer will know that there are many other firms that sell the same price for less, thus will that business loss lots of money and consumers (Sloman; 2010).

Based on the information about oligopoly and perfect competition it is definite that they are the most competitive sector in South Africa. If there was not market structures like that, suppliers would have made prices unreachable for consumers.

Task 2

There are many stakeholders affected by the terrible allegation. The directors of various supermarkets. They where accused by the Competition Commission of price fixing. This could have a huge affect in the trust of the directors and its management team. The fact that directors are willing to go through with the investigation, proves already that they have nothing to hide, thus is the price fixing not applicable to them.

The consumer was also a victim of this allegation. They have nothing to do with the price fixing directly, but they have indirectly. They price they paid for the items they bought, may be too much. This could make potential customers unfaithful towards the business and the businesses itself will loss money.

Looking at employees, they did not play a part in the price fixing allegation. Where the benefits for the...