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1、ThepricewarbetweentheChinaMobileandChinaUnicomWhenwegraduatedfromhighschool,ourparentswouldbuyamobilephoneforus,becausewithamobilephone,it’smucheasierforustocommunicatewithourparents,andwecanstrengththelinkswithourparents,parentscanalsoknowthatwearewellintheuniversity.But,whycanthathapp
2、en?Thereisanindustrythatcalledmobilecommunicationindustrywhichmakesourdailylifemoreconvenientthanbefore.Intheageoftheinformationexplosion,themobilecommunicationindustrydevelopsveryfast.Andthemarketisdividedintotwomainparts,oneisChinaMobile,andtheotherisChinaUnicom.Fromthetable,wecanclea
3、rlyseethat,ChinaMobilehas670millionsusersin2012whichare70%ofthetotalusers;ChinaUnicomismuchlessthanChinaMobile.Itonlyhas30%ofthetotalusers.Butastimegoeson,wecanalsoconcludethatChinaUnicomdevelopfasterthanChinaMobil.BecausethemarketsshareoftheChinaMobileisdecreasingbutforChinaUnicomitisi
4、ncreasing.Nowweknowthatthecompetitionbetweenthetwocompaniesisveryfierce.Bothofthecompanywantstoattachmorecustomers,sotheyreducethepriceofthecallsasmuchastheycould,andtheyalsointroducingmanynewpackages.Intheinternet,wecanseethattherearemanypackagesthatwecanchoosefrom.Wecancomparethemonth
5、einternet,andthenchooseapackagewhichisthemostsuitablepackageforus.Forusstudents,wealsochoseapackage.Becausewiththepackagewecannotonlyhave1000minutestocallourfriends,butwecanalsoget250hoursfreetosurftheinternet.Itisgoodforustosavealotofmoney.Wearethebeneficialofthecompetition.Abovethesew
6、ecaneasilyconcludethatthemarketofthemobilecommunicationisoligopoly.Definitionoftheoligopolyisthatamarketstructureinwhichonlyafewsellersoffersimilaroridenticalproducts.Moreexactly,it’scalledduopoly.Fromthebook,wehavelearnedthatinthissituationthebestwayforthecompanytomakebiggestprofitisto
7、letthegroupofthefirmsactinginunison.Becauseitcanhelpthemmakethebestdecisionandhelpthemgetthebiggestprofit.ButChinaMobileandChinaUnicomdon’tdothat.Nowletusanalyzethereasonsofwhytheywanttobeinthepricewar?First,currentlythereexistsahugeprofitspaceinthemobilecommunicationindustry,t
