Indian Beer Industry – Oligopoly

Economies of denture The increase inefficiency of productionas the number of goods world produced increases. Government policies restrictions on advertising leading to surrogate ADVT. , polic ies which make it difficult for expansion of companies. Access to distribution channels cost of distribution in this industry admits to be looked at logically. If firms in this industry carries noteworthy costs from distribution which are then reflected in their legal injurys to clients, the customers will charter the competition.Suppliers product oppositeiation/ SWITCHING COSTS OF BUYERS the development of new products that may create a new aim or create fictionalise customers is always a key success when in a competition. spillage barriers Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, huge exit costs, such as asset write-offs and closure costs, and inter-related businesses, making it infeasible to sell a realm of it. Another common barrier to exit is loss of customer goodwill. Buyers electric switch costs n order to remain competitive, companies in this sector essential 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 elementary for companies to get lost in the mix. However by staying on pilfer wid interesting and new ways to promote a product, people reckon that product better. Importance of a specific product to a customer An imp competitive advantage that ensures that customers will be less presumable to switch to another company for a similar product. BUYERS USE OF binary SOURCES urchasers regarding the selection of suppliers (sources), e. g. the use of a single or two or more (multiple) sources. Considers the justification of either method in the context of reduction the uncertainty (risk) of a particular purchase. Illustrates the marketers view of sourcing and the differing sales tactics active according to the suppliers preferences. Concludes that purchasers should examine uncertainty buying-selling situations (UBSS) objectively with regard to their own organizations need criteria, e. g. cost and timeliness, this determining the relevant sourcing policy.Demand and contribute curve postulate for beer increases at all prices 1. Initially in equilibrium with P1 and Q1. 2. A non-price decisive 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 quantity demanded uphill above the quantity suppliers are willing to supply at price P1 (? 2. 50) 3. The market price responds to excess demand by change magnitude. This causes demand to melt off again (movement back up the demand curve), but also supply to expand (movement down the supply curve) 4.The new equilibrium is reached where supply and demand are equal at the high price P2 (? 3) and Q2 (50 bottles) One of the reasons for higher sales of beer in South-India is the hot and humid climate for around 10 months. Due to this people consume beer all throughout the year increasing the volumes. As the figures suggest, thehot states contribute most to the revenues generated from the beer sales. (See Exhibit 15) . Hence we conclude that the boilersuit market in India is highly diverse and for each region different strategy needs to be employed.