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1、ThepricewarbetweentheChinaMobileandChinaUnicomWhenwegraduatedfromhighschool,ourparentswouldbuyamobilephoneforus,becausewithamobilephone,it’smucheasierforustocommunicatewithourparents,andwecanstrengththelinkswithourparents,parentscanalsoknowthatwearewellinthe
2、university.But,whycanthathappen?Thereisanindustrythatcalledmobilecommunicationindustrywhichmakesourdailylifemoreconvenientthanbefore.Intheageoftheinformationexplosion,themobilecommunicationindustrydevelopsveryfast.Andthemarketisdividedintotwomainparts,oneisC
3、hinaMobile,andtheotherisChinaUnicom.Fromthetable,wecanclearlyseethat,ChinaMobilehas670millionsusersin2012whichare70%ofthetotalusers;ChinaUnicomismuchlessthanChinaMobile.Itonlyhas30%ofthetotalusers.Butastimegoeson,wecanalsoconcludethatChinaUnicomdevelopfaster
4、thanChinaMobil.BecausethemarketsshareoftheChinaMobileisdecreasingbutforChinaUnicomitisincreasing.Nowweknowthatthecompetitionbetweenthetwocompaniesisveryfierce.Bothofthecompanywantstoattachmorecustomers,sotheyreducethepriceofthecallsasmuchastheycould,andtheya
5、lsointroducingmanynewpackages.Intheinternet,wecanseethattherearemanypackagesthatwecanchoosefrom.Wecancomparethemontheinternet,andthenchooseapackagewhichisthemostsuitablepackageforus.Forusstudents,wealsochoseapackage.Becausewiththepackagewecannotonlyhave1000m
6、inutestocallourfriends,butwecanalsoget250hoursfreetosurftheinternet.Itisgoodforustosavealotofmoney.Wearethebeneficialofthecompetition.Abovethesewecaneasilyconcludethatthemarketofthemobilecommunicationisoligopoly.Definitionoftheoligopolyisthatamarketstructure
7、inwhichonlyafewsellersoffersimilaroridenticalproducts.Moreexactly,it’scalledduopoly.Fromthebook,wehavelearnedthatinthissituationthebestwayforthecompanytomakebiggestprofitistoletthegroupofthefirmsactinginunison.Becauseitcanhelpthemmakethebestdecisionandhelpth
8、emgetthebiggestprofit.ButChinaMobileandChinaUnicomdon’tdothat.Nowletusanalyzethereasonsofwhytheywanttobeinthepricewar?First,currentlythereexistsahugeprofitspaceinthemobilecommunicationindustry,t
