Indian Beer Industry – Oligopoly

Economies of scale The increase inefficiency of productionas the contain sense of goodsbeing produced increases. Government policies restrictions on advertising leading to surrogate ADVT. , polic ies which make it difficult for expansion of companies. Access to dissemination channels cost of distribution in this application needs to be looked at logically. If firms in this industry carries significant costs from distribution which are then reflected in their prices to clients, the customers exit choose the competition.Suppliers product differentiation/ SWITCHING COSTS OF BUYERS the development of raw products that whitethorn cause a new prerequisite or create repeat customers is always a key success when in a competition. Exit barriers Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, huge exit costs, such(prenominal) as asset write-offs and closure costs, and inter-related businesses, making it infeasible to sell a part o f it. Another common barrier to exit is loss of customer good bequeath. Buyers switching costs n order to remain competitive, companies in this firmament must make their products readily available and accessible to their customers or they will go with the competition. Advertising when everyones advertising in the industry is d same, its easy for companies to get lost in the mix. However by staying on top wid interesting and new ways to promote a product, commonwealth remember that product better. Importance of a specific product to a customer An imp competitive advantage that ensures that customers will be less(prenominal) likely to switch to another company for a similar product. BUYERS workout OF MULTIPLE SOURCES urchasers regarding the selection of suppliers (sources), e. g. the use of a single or both or more (multiple) sources. Considers the justification of either method in the scope of reducing the uncertainty (risk) of a particular purchase. Illustrates the marketers vi ew of sourcing and the differing sales play employed according to the suppliers preferences. Concludes that purchasers should examine uncertainty buying-selling situations (UBSS) objectively with regard to their aver organizations need criteria, e. g. cost and timeliness, this determining the relevant sourcing policy.Demand and tot stoop demand for beer increases at all prices 1. Initially in equilibrium with P1 and Q1. 2. A non-price determinant of demand (availability of complement goods) has changed the demand curve shifts out from D0 to D1 At the initial price level there is excess demand with metre demanded rising above the quantity suppliers are willing to supply at price P1 (? 2. 50) 3. The market price responds to excess demand by increasing. This causes demand to contract again (movement back up the demand curve), but to a fault supply to expand (movement down the supply curve) 4.The new equilibrium is reached where supply and demand are equal at the higher price P2 (? 3) and Q2 (50 bottles) hotshot of the reasons for higher sales of beer in South-India is the hot and humid climate for some 10 months. Due to this people consume beer all throughout the division increasing the volumes. As the figures suggest, thehot states contribute most to the revenues generated from the beer sales. (See Exhibit 15) . Hence we purpose that the overall market in India is highly diverse and for each realm different strategy needs to be employed.