Daffodil International University

Course Title: Strategic Management Course Code: MGT-501 MBA Program Assignment on Strategic Management Question Analysis

Prepared for:
Professor M.A. Akkas
Department of Business Administration Faculty of Business & Economics

Prepared by:
Milton Chandra Das

ID# 123-14-891 Sec# C

April 26, 2013

Executive Summary
It is very important for managers to know price leadership and its various types and also Oligopoly market and its characteristics. Oligopoly is a kind of imperfect market where there are a few firm in the market, producing either and homogeneous product or producing product which are close but not perfect substitutes of each other. The firms under oligopoly are interdependent in making decision. They are interdependent because the number of competition is few and any change in price & product etc by an firm will have a direct influence on the fortune of its rivals, which in turn retaliate by changing their price and output. The firms under oligopolistic market employ aggressive and defensive weapons to gain a greater share in the market and to maximize sale. Under perfect competition and monopoly expenditure on advertisement and other measures is unnecessary. But such expenditure is the life-blood of an oligopolistic firm. Under oligopoly a firm cannot assume that its rivals will keep their price unchanged if he makes charge in its own price. As a result, the demand curve facing an oligopolistic firm losses its determinateness. Price leadership is a concept which economy have used t describe the possible chapter of price competition in an oligopolistic market situation. Price leadership implies a set of industry practices or customs under which list price changes are normally announced by a specific firm accepted as the leader by others, who follow the leaders initiative. Wide variation are possible in the stability of the leaders position, the reason for its acceptance as a leader, its influence over the other firms and its effectiveness in leading the industry to prices that maximize joint profit.

Table of Contents
1. Price leadership..01 2. Types of Price Leadership..02 3. Oligopoly...06 4. Characteristics of Oligopoly..07 5. Reference11

Reference
1. Text Book 2. K.K.Dewett 3. Samulson And Nordhays