1) Choose ANY One topic from the following list: - Australia’s stand on Renewable energy - Demand and supply of ANY resources in Australia which includes human resource also - Oligopoly, Monopoly and...

Monopoly, Duopoly and Oligopoly in Australia
I. Introduction: The essence of the story
Oligopoly behaviour is common in Australia- some of the key industries in the economy is characterized by oligopoly. The supermarket chain in Australia operates under the market structure of oligopoly. Earlier Supermarket chain in Australia was characterized by duopoly where Coles and Woolworth were two major supermarkets dominating the entire market. Both of them control 70-80% of the market share. But the gradual expansion of Aldi, a German supermarket has transformed the supermarket structure from duopoly to oligopoly. (Sheedy, 2016)
The supermarket in Australia was duopoly for many years. Coles and Woolworth have enjoyed huge market share. The two dominant players have enjoyed comfortable and profitable duopoly for substantial period of time. But the characteristics and the market share of two super market giants have significantly changed after the entry of Aldi in the country. The German chain has entered 2001 in Australia and with their steady presence they have eventually become a strong player is the market. They have opened many stores in various parts of the country and gradually become a potential competitor. Aldi has targeted lower socio-economic groups and opened many of their stores in low income area along with mainstream areas aiming to expand their reach. With their aggressive expansion plan, Aldi has grabbed considerable market share and pose a huge challenge to Australian supermarket duopoly. The main loser from Aldi’s rise was Woolworths but not Coles because under the new ownership Coles has made huge investment to revamp their store and make their offers appealing. Costco and Lidl are another two major competitors who has also grown in Australian. Aldi, Cotsco and Lidl have combinedly put huge downward pressure on the profitability of two supermarket giants. (Carson, 2017)
II. Economic Analysis
Duopoly:
Duopoly is the simplest form of oligopoly where there are only two firms operate in the market. In Australian supermarket, Coles and Woolworth were two key players dominating the market though they have highly criticized for their market dominance. Two giants have exploited their market power to the fullest. Critics strongly argue that regulatory and legislative scrutiny was insufficient – political failure and inadequate scrutiny has allowed...