Imperfect Competition - Oligopoly

In an oligopoly a number of companies will compete with each other but a small number of large companies will dominate the market. Branding and creating a quality image is important in an oligopoly. There will also be an effort to differentiate their goods from those of their competitors. There will be some barriers to entry, for example, high start-up costs or the use of a trademark or special patent to prevent other businesses from copying their products. A good example of an oligopoly in the United Kingdom (UK) is the supermarkets where about 5 - 6 companies control a significant percentage of the market. The market for film streaming services is also an oligopoly with big businesses like Netflix, Amazon and Hulu dominating the market worldwide.