Duopoly Case Study

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PERUVIAN TELEPHONE SECTOR 1999-2014. A case of duopoliy? The academic definition of duopoly is an oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market (Wikipedia.org). If we look to the Peruvian telecommunication sector, Telefónica-Movistar and Claro can be considered an example of Oligopoly, even when there are other companies like Nextel. That is because between these two they have more than the 90% of the market and Nextel is focused in other kind of customers (more business). In addition the presence of Claro and Movistar is bigger than the rest. They can offer products such as cellular, microchips, chips and prepaid cards. Evolución…show more content…
A new mobile operator has started its operations here in Perú, Vietnamese company Viettel officially start commercial operations. It has chosen the commercial name of Bitel (….http://gestion.pe/empresas/viettel-inicia-operaciones-comerciales-manana-nombre-bitel-2104044) . He is joining to the old established companies Movistar, Claro and Nextel. The presence of the commercial offering of the Vietnamese company must boost this market to benefit the user, "said Osiptel president Gonzalo Ruiz Diaz. In factm the new company is starting with n aggressive strategy based on prices…show more content…
"We are interested in the social aspect and identified the areas where they can increase the number of calls to win together," he said. The Peru said Viettel will serve for entry into Brazil. (http://gestion.pe/empresas/guillermo-thornberry-viettel-entrara-bajar-tarifas-porque-apunta-ganar-volumen-llamadas-2057868). According to Viettel sources, they want to get lower prices and also they are interested in the social aspect. They says that as part of this vision, there is a whole social sector to which they have access and will not win each, but by volume. In fact, the profitability of this sector is high. It is possible to see it in the Picture X

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