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Assignment On Oligopoly (Puma) : Mi-122, Behind Pharma City, Selaqui Industrial Area, Dehradun, Uttarakhand 248001

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Assignment on

Oligopoly (Puma)

MBA IB
2020-22
Submitted To Submitted By
Prof. Shailja Khanduri Piyush Sharma
0201MIB038

Doon Business School


Mi-122, Behind Pharma City, Selaqui Industrial Area, Dehradun,
Uttarakhand 248001
Oligopoly

The word Oligopoly is derived from two Greek words – ‘Oligi’ meaning ‘few’ and ‘Polein’ meaning
‘to sell’. Oligopoly is a market structure with a small number of firms, none of which can
keep the others from having significant influence. The concentration ratio measures the
market share of the largest firms. an oligopoly is two or more firms. There is no precise
upper limit to the number of firms in an oligopoly, but the number must be low enough
that the actions of one firm significantly influence the others.

Features of Oligopoly

 Few Firms
 Barriers to Entry
 Non-price competition
 Interdependence

Product Differentiation

 Focus on the brand's DNA and heritage.


 Build on the brand's biggest and most promising category and strive for category
leadership.
 Heavily invest in innovation and in parallel cut Opex .
 Maintain transparent and trustworthy relationships with main stakeholders
 Focus on a few selected marketing campaigns and make them as big and as
exciting as possible.

Pricing Strategies
Puma offers a large range of products in the footwear category. There are two main
factors that affect pricing in the shoe industry. They are the level of demand and
competition. Competition in the shoe industry is high and companies invest in
product innovation as well as marketing to maintain demand. Accordingly, they set
the prices of their products. Puma’s pricing strategy is a competitive pricing
strategy. It offers premium-priced products as well as a large range of products
priced more affordably compared to the competitors. This pricing strategy helps
Puma sustain demand and drive sales higher. Compared to the two leading brands
in the shoe industry, Nike and Adidas, Puma prices products more affordably.
However, it still focuses on quality and also offers seasonal discounts on products to
grow its sales. This pricing strategy has proved favorable for Puma which shows in
its revenue graph for the last several years.  

Competitors
 Nike

 Adidas

 Reebok

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