Critical Review Of Newspaper Article Exercise †Free Samples

Question: Discuss about the Critical Review Of Newspaper Article Exercise. Answer: Introduction: Market of 21st century is largely driven by the economic principles and irrespective of the national or global market economic thoughts are being utilized in order to enhance profit, growth rate and sustainability of the business (Leigh and Blakely 2016). This essay is meant to perform critical analysis of the selected article, which was published in Sydney Morning Herald with the headline Can toilet paper be a luxury product? Solaris attacks $1.4b oligopoly. Through the analysis this essay will try to understand the oligopoly market in real life scenario, then interpret the same with the economic principles. Next to this the essay will portray personal understanding from the critical analysis of the selected article and conclude with summarizing the findings. Brief summary of the article: The selected article portray the toilet paper market in Australia, which is a real life example of oligopoly. According to the article there are three large player in the market who sales close substitute product and possess considerable amount of market power (Evans, 2018). In addition to this, the paper highlights that market of the toilet paper in Australia is presently flat due to the lower demand of the said product. Lastly the report highlights that Solaris, which is new entrant to the market is willing to sale toilet paper as the luxury good, and aims to double its revenue through stimulating the market with their own market penetrating plans. Economic interpretation of the article: Oligopoly is a type of market where small number of sellers deal with large number of buyers (Feng, Li and Li 2014). Considering the toilet paper market of Australia, it can be seen that there are three major player. First is Kimberly-Clark Australia that enjoys 31.5% market share, then comes the ABC Tissue that has occupied 28.6% market share and lastly Asaleo Care that has consumed 26.2% of market share (Perini Journal, 2018). Other competitors of the market enjoys 13.7 % market share that highlights the market power of large brands. Over the year consumers of the Australia has showcased very little rise in the demand of the toilet paper in the country, that highlights the saturated demand position of the market. Under this situation Solaris paper, which is an Indonesian market giant is trying to penetrate the market with their effective plans. Solaris is accounted for 50% market share in its origin country and as the effective measure to penetrate the oligopoly market it aims to s ale only luxury toilet paper in the market (Evans, 2018). Their main focus if to see their products on the top rack of the supply stores like Coles and Woolworths to double their revenue within next five year. Though there is considerable market competition, yet the firm aims to achieve their target with promotion and with special discounts to the female buyers. This highlights that under oligopoly market though close substitute product produced by the competitors, yet new entrant can break the deadlock through effective planning while mitigating the market power of the present market dominators (Yang, Ng and Ni 2017). Macroeconomic learning from the article: The article highlights the real life scenario and market competition under the oligopoly. It has been learned that market competition in oligopoly comes from the considerable amount of market share and next to this it helps the present competitors to deter new entrant (Lopez, Zheng and Azzam 2015). However, over the time customer satisfaction gets deteriorated with the same product and there comes the market saturation that allows new entrants to penetrate market with effective market penetrating programs (Lee, Matsumura and Sato 2017). In oligopoly market, sellers sale close substitute product that leaves the seller with product promotion strategy as one of the best option to provide stimulus to the market. Next to this, it has also been learned from the article that oligopoly market allows new entrant with luxury good in order to provide substitute to enhance the saturated customer demand and discounts can also be granted as one of the best way to entice the market share of the pre sent market competitors (Evans, 2018). Conclusion: Selected article was based on the oligopoly market structure of toilet paper in Australia that provided insight view of the real life scenario of oligopoly. The article highlights various points of the oligopoly market and market competition as well as points out the strategy for new entrants. Considering the amount of details of the article it can be stated that it clearly defines the macroeconomic variables properly and helps the researcher to understand market strategies, market competition and importance of supply chain in market framework. References: Evans, S. (2018).Can toilet paper be a luxury product? Solaris attacks $1.4b oligopoly. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/can-toilet-paper-be-a-luxury-product-solaris-attacks-14b-oligopoly-20150415-1mlw8q.html [Accessed 7 Apr. 2018]. Feng, Y., Li, B. and Li, B., 2014. Price competition in an oligopoly market with multiple iaas cloud providers.IEEE Transactions on Computers,63(1), pp.59-73. Lee, S.H., Matsumura, T. and Sato, S., 2017. A New Approach to Free Entry Markets in Mixed Oligopolies: Welfare Implications. Leigh, N.G. and Blakely, E.J., 2016.Planning local economic development: Theory and practice. Sage Publications. Lopez, R., Zheng, H. and Azzam, A., 2015, July. Oligopoly power in the food industries revisited: A stochastic frontier approach. InAAEA and WAEA Joint Annual Meetings San Francisco, California(pp. 26-28). Perini Journal. (2018).Australian tissue market developments. [online] Available at: https://www.perinijournal.it/Items/en-US/Articoli/PJL-44/australian-tissue-market-developments [Accessed 7 Apr. 2018]. Yang, L., Ng, C.T. and Ni, Y., 2017. Flexible capacity strategy in an asymmetric oligopoly market with competition and demand uncertainty.Naval Research Logistics (NRL).