Monday, April 16, 2012

Entry in an Oligopoly

Iliad is entering the wireless cell phone service market in France, a market that is a highly concentrated oligopoly. Iliad is differentiating their service by not forcing customers into long-term contracts and is also competing on price, as they are charging a much lower price than the incumbent firms. Thus we have an example of both pricing and product features differentiation simultaneously.

No comments: