An oligopoly is a market structure in which a few firms dominate the industry. In an oligopoly, firms have some control over prices due to their limited number and the interdependence among them. Oligopolies can be found in various industries, including telecommunications, oil, and automobiles.
One example of an oligopoly in India is the telecommunications industry. In the early 2000s, the Indian telecommunications industry was dominated by a few firms, such as Bharti Airtel, Vodafone, and Idea Cellular. These firms had a significant market share and were able to exert some control over prices.
However, the entry of a new player, Reliance Jio, in 2016 disrupted the oligopoly. Reliance Jio introduced disruptive pricing strategies, such as offering free voice calls and cheap data plans, which led to a price war among the firms. As a result, the market share of the incumbent firms declined, and Reliance Jio emerged as a dominant player in the market.
Another example of an oligopoly in India is the oil industry. The Indian oil industry is dominated by a few firms, such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum. These firms have a significant market share and are able to influence prices. However, the entry of private firms, such as Reliance Industries and Essar Oil, has increased competition in the market.
In conclusion, the Indian telecommunications and oil industries are examples of oligopolies where a few firms dominate the market. However, the entry of new players has increased competition and disrupted the oligopoly in some cases.