Car manufactures
This type of market is prevalent in the world economy. Few firms in the world are providing specific products and are controlling the entire market. A real-world example of an oligopoly market today is the Automobile companies. There are very few firms in the world that m, manufacture cars and other automotive. The companies, such as the Toyota company based in Japan, fit in the oligopoly market for the following reasons.
There are very few companies that manufacture cars; they include Toyota, Nissan, and others. They have controlled the entire market through the sale of the vehicles. All the countries buy cars from these companies. The next feature is that it is not easy for other firms to join the market. However, how hard other firms may try to compete with these companies cannot be defeated. This complication is a large amount of capital involved, the source of the raw materials.
These firms depend on each other. These companies inter rely on each other. They use various ways to provide the finished automotive. Some companies produce some parts, and others manufacture the engines while others make pieces of stuff like steering wheels and tires. They heavily borrow ideas from each other on the areas of resolutions and the new ways of production.
The vehicles they produce are different. They have additional modifications and are of different sizes. This makes this market ton be an oligopoly. There is less advertising. There is no need for advertisements since the vehicles are still purchased with or without ads. Therefore these firms do not spend on promotion since they face little or less competition.
There is price rigidity for the prices of the manufactured vehicles. These firms control the costs themselves without the influence of the government. They set their prices according to the economic state. This feature makes them be oligopoly market. Lastly, there are barriers to enter this market because there are limited sources of raw materials, and the initial capital for joining this market is very high.