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Oligopoly
Summaries, Notes2 Economics, Marketing, Advertising, Business
Now a mobile telephone operator demand in Latvia is really great, but not so great to let forth company of this kind to engrain in this country. Few years ago “Baltcom GSM” president Pēteris Šmidre said that third operator existence in Latvia is unnecessary and unreal. He said that three companies from the same niche can work and exist only in country which is very developed or in country which is really corrupt. In spite of what he said Latvia now has three mobile operators – “Latvijas Mobilais Telefons”, “Tele2” and “Bite”. So for “LMT” there is no need to worry about one more competitor in market. They only need to explore existing competitors.
Every year in Baltic States is measured mobile operator and internet service provider customers satisfaction. In Latvia Bite clients are the most satisfied. After Bite there comes LMT and Tele2. If we measure in 100 points – Bite(80.1), LMT(75.4), Tele2(75.7). …
Between a lot of different market structures there is a market structure in which a few firms dominate - oligopoly. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market. For example, major airlines in United Kingdom like British Airways (BA) and Air France operate their routes with only a few close competitors, but there are also many small airlines catering for the holidaymaker or offering specialist services. I will look on one of the Latvian oligopoly – mobile network operator „Latvijas Mobilais telefons” and will try to describe situation and perspectives in this oligopoly market.
