Find real examples of oligopoly and monopolistic competition in competitive firms/industries in India or China and explain their structure and behavior.

One example of an oligopoly in China is the automotive market, while a classic monopolistic competition example in India is the Indian fast-moving consumer goods market.

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Oligopoly is the most complex market structure in which a small group of companies, producers, and sellers dominate a certain industry. In China, a classic example of an oligopoly is the automotive industry. The automotive market is mainly dominated by four large companies: Great Wall Motors Co., Geely Automobile Holdings,...

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Oligopoly is the most complex market structure in which a small group of companies, producers, and sellers dominate a certain industry. In China, a classic example of an oligopoly is the automotive industry. The automotive market is mainly dominated by four large companies: Great Wall Motors Co., Geely Automobile Holdings, SAIC Motor Corp and Guangzhou Automobile Group.

In an oligopoly, companies sell either identical or differentiated products; GWM Co. sells passenger cars and trucks, Geely sells automobiles, engines and luxury vehicles, SAIC Motor Corp sells automobiles and commercial vehicles and GAC sells Commercial vehicles, passenger cars, buses and automotive components.

Due to the rapid development of the industry, the costumers are willing to pay more, but they also expect better quality of the goods and services in return. Because these four companies dominate the market, it’s hard for other companies to enter the business and try to compete—we call this barriers to entry, which is one of the main characteristic of an oligopoly.

Monopolistic competition is a market structure in which a lot of companies offer differentiated or heterogeneous goods and services, which is why they cannot be perfect substitutes. In a monopolistic competition the barriers to entry and exit are low. A good example of a monopolistic competition in India is the fast-moving consumer goods industry (FMCG), which is the fourth largest sector in the economy.

Fast-moving consumer goods are products which have a relatively low price and often sell out fast. The FMCG market attributes its success to the many investments in various FMCG companies, as well as the massive interest in the products, most commonly shown by the younger generations.

One of the biggest FMCG company is Hindustan Unilever Limited (HUL), which sells personal care products, household items, foods and beverages, and more. One of the most important sectors in the firm is its advertising department; in fact, one of the reasons why HUL is so successful is the company's advertisements and advertising policy. HUL and Procter & Gamble are the two main competitors in the industry when it comes to advertisements, as they often target each other.

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