Business Oligopoly The Australian Commonwealth Bank Essay

An ‘Oligopoly’ is a market form in which a Business or Industry is directed by a minor quantity of sellers also know as (Oligopolists)(2). Oligopolies can result in numerous forms of collusion between any of the dominating markets, which may reduce the amount competition therefore it leads to higher prices for buyers. The banking system is liquid and highly regarded in the Australian Financial sector. Over the past 10 years the four major banks in Australia on numerous occasions how shown just how far they are willing to go in becoming the most successful bank. In recent times, the very well know Commonwealth Bank is now the second largest Australian registered establishment on the Australian Securities Exchange (ASX) as of January 2008.†¦show more content†¦Over the past years the banks have managed to maximise more than $1500 form every person in Australia. They will all say that this would happen through superannuation. The GDP took quite a hit during the ‘GFC’ going from 1.2% down to 0.5%. (8) What we all realise that from since the global financial crisis people have become more aware of the effects just by looking at all the countries and how they were affected. As the new parliament tries to revoke and reform the market the complexity and anxiety will always be at stake, as it will reflect the future of the financial market. (9) To the public in Australia the banks come across as highly profitable in terms of investment and interest rates etc. The general public seem to think that all banks earn their profits through monopoly. In most cases this statement is untrue, and if the policy action could seriously underestimate the Australian banking industry. As most banks are often criticised for the majority of the profits they earn. (7) It is important for people to understand that a profit is not going against the public its to help the economy moving and revolving. All the banks help each other out in doing this and making sure that the financial market is in the best possible position it can be. So yes the profits of the four banks are quite large. This is mainly reflected through the size of the business rather than obviously excessive profits and raising risks therefore it may show anShow MoreRelatedMarketing Plan for Bank of Melbourne5039 Words   |  21 Pages   M a r k e t i n g                                                                      P a g e   1                                     Bank   of   Melbourne    Marketing   Plan   for   Victoria    Alison   Chew,   Vicky   Bui,   Sunny   Sun,   Yikai   Zhang          2012    M K T G 1 0 0 0 1    –    P r i n c i p l e s    o fRead MoreMerger and Acquisition: Current Issues115629 Words   |  463 Pagesviii CONTENTS 3.5 3.6 Assessment of the transaction Conclusion 38 40 4 An Essay on the History of a Merger: The Case of the National Bank of Canada Raymond Thà ©oret and Franà §ois-Éric Racicot 4.1 4.2 4.3 4.4 4.5 Introduction The structures of the two merged banks The new merged bank A low P/E ratio for the stock of national bank Conclusion 42 42 43 50 53 54 5 Corporate Diversification: The Costs and Benefits of Synergy Felipe Balmaceda 5.1 5.2 5.3 5.4 5.5 5.6 IntroductionRead MoreStrategy Management18281 Words   |  74 Pages Strategic Management CONCEPTS CASES FRANK T. ROTHAERMEL Georgia Institute of Technology rot12737_fm_i-xlvi.indd iii 17/11/11 7:37 PM Confirming Pages STRATEGIC MANAGEMENT: CONCEPTS AND CASES Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright  © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. No part of this publication may be reproducedRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pages22/10/2007 11:54 Page 599 Guide to using the case studies The main text of this book includes 87 short illustrations and 15 case examples which have been chosen to enlarge speciï ¬ c issues in the text and/or provide practical examples of how business and public sector organisations are managing strategic issues. The case studies which follow allow the reader to extend this linking of theory and practice further by analysing the strategic issues of speciï ¬ c organisations in much greater depth –Read MoreStrategic Marketing Management337596 Words   |  1351 PagesOur thanks go to Janice Nunn for all the effort that she put in to the preparation of the manuscript. Strategic Marketing Management Planning, implementation and control Third edition Richard M.S. Wilson Emeritus Professor of Business Administration The Business School Loughborough University and Colin Gilligan Professor of Marketing Sheffield Hallam University and Visiting Professor, Northumbria University AMSTERDAM †¢ BOSTON †¢ HEIDELBERG †¢ LONDON †¢ NEW YORK †¢ OXFORD PARIS †¢ SAN DIEGO