Q1 What is a duopoly market? How is competition dynamics structured in a duopoly market? What are the pitfalls of a duopoly market? In the similar kinds of product have two large company competition in the market was calling duopoly market. Duopoly market can be advantage or disadvantage for both company depend on setting the agreement together. Two company can be collaboration or connive for setting the product price which both will gain maximum benefit than try to discount or offer the better price to customer. If both company contend about the price, the higher benefit will on customer. Most case, Airbus vs Boeing, AMD vs Intel, and etc. They do not have any agreement about pricing and also competitive to offer the better product to customer for increase their market share. Who offer the better, cheaper, faster will become more succeeded in their business. The global aircraft manufacturing industry are very hard for the new company to entering the commercial and civil aircraft business (High Barrier to entry). The aircraft business have very high start-up cost for doing the Research and Development (R&D) for competition with the exist airplane company, Airbus and Boeing. Including capital intensive production which refer to million of parts, high technology assembly process, manufacturing infrastructure and a thousand of employee. The aircraft also need a continuous improvement for effort demand from customer and world changing. These factor made the cost per unit higher which made break-even level for each aircraft model project taken over the decades.
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