Nokia Consumer Electronics Business

Table of Contents:

Case for Namibia: 2

Monopoly Structures in Namibia: 3

Analytical view: 3

Oligopoly Structure Characteristics: 4

Market Behavioral attributes: 5

Barriers to entry: 6

Reference 7

”Oligopoly is the most prevalent form of market structure in the manufacturing sector”

“Critically evaluate this statement with the use of the country and/or firm of your choice”

Introduction:

Oligopoly is a market structure characterized by a small number of large firms that dominate the market, selling either identical or differentiated products, with significant barriers to entry into the industry. In Namibia, the oligopolistic market structure is mostly prevalent in the motor industry, banking industry and real estate markets. This market structure is one of four basic market structures to be found in Namibia. The other three are perfect competition, monopoly, and monopolistic competition. Oligopoly dominates the modern economic landscape, accounting for about half of all output produced in the economy. Oligopolistic industries are as diverse as they are widespread, ranging from breakfast cereal to cars, from computers to aircraft, from television broadcasting to pharmaceuticals, from petroleum to detergent.

Case for Namibia:

Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry. The market can be dominated by as few as two firms or as many as twenty, and still be considered oligopoly. Good examples in clued:

Motor industry – Pupkewitze Holdings Limited, Ritter’s Toyota, Indongo Car Dealers, M & Z etc.

Banking Industry – First National Bank, Standard Bank Namibia, Ned Bank and Bank Windhoek.

All the above mentioned firms connive to control the prices of their products. The most prevalent barrier to enter these industries is of resource nature. One requires massive initial capital investment.

In the motor industry, small entrants had tried to penetrate the...