There is so much for Unit 3 (and this is deffo a possible question) in this recent story from the BBC.
Issues discussed include:
Competition and revenue loss (Oligopoly market competing on price)
Government watchdog & regulations: Ofcom regulations (Profit targets and service targets)
Natural Monopoly: Universal Service offered by Royal Mail (are they acting against competitors interests by charging more for them to use the Natural monopoly part of their business?)
'Cherry Picking' by competitors
Contestability: Is there brand loyalty - probably to letters, but not business mail and parcels.
Changing markets = changing competitive practices: Sunday service - due to increasing demand.
Click here for the article - a must read before Mondays lesson!!!!
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