Business: Theory and Practice 10(4): 247-258, doi: 10.3846/1648-0627.2009.10.247-258
Multicriteria Evaluation of the Competitive Environment in the Oligopolic Market
expand article infoRomualdas Ginevičius, Algirdas Krivka
Open Access
Abstract

The formation and successful implementation of a modern enterprise’s competitive strategy is directly related to effective analysis of the environment surrounding the particular enterprise. The environment of the enterprise is traditionally divided into internal and external – the most dynamic and hardly forecasted component of the latter is the competitive (market, industry) environment. The competitive environment is considered to be a complex phenomenon, characterised by multiple quantitative and qualitative indicators (criteria), making the multicriteria evaluation methods to be the most appropriate tool for the analysis. The article presents the model of the multicriteria evaluation of the competitive environment in the oligopolic market covering the selection of the criteria for comprehensive evaluation, the distribution of weights, the selection of the appropriate multicriteria evaluation methods, the calculations and the interpretation of the results. The model is applied for the comparative analysis of three Lithuanian oligopolic markets: cellphone connection service market, beer market and Internet connection service market.

 

Keywords
market structure; oligopoly; competitive environment; multicriteria evaluation; cellphone connection service market; beer market; Internet connection service market