Monopoly Market - Research in Taxi Services in Mumbai

In: Business and Management

Submitted By husainyhz
Words 6521
Pages 27
International Baccalaureate Diploma Program
Podar International School
Extended Essay
Economics

Research Question: Does Meru Cabs have a monopoly amongst long distance commuters in South Mumbai?

Traditional Cabs

Mega

Word count: 3,996

Abstract
Through this essay, I wish to investigate the market structure in which Meru, a privatized taxi service provider that networks throughout the city of Mumbai, functions in. As the popularity of Meru continues to grow rapidly, it invoked a few rather interesting questions; what kind of market structure does it comply to? “Does Meru Cabs have a monopoly amongst long distance commuters in South Mumbai?” Meru are one of the first to introduce quality taxi services in Mumbai, and cater to both North and South Mumbai residents.
To investigate the market structure, many forms of data collection were considered. These include a survey with forty-five people amongst which half were from my building and locality (South Mumbai) and friends and family residing in the north. Also to further explore, I carried out a tabulated observation at the Mumbai Domestic Airport (North Mumbai) to tally mark the number of travelers traveling in different kinds of taxis and took an interview with Meru. The data obtained has been analyzed and represented with the help of diagrams such as pie charts, tables, and graphs.
The market structure of taxi providers in Mumbai have characteristics of an oligopoly, however, Meru appear to be reaping the benefits of a monopoly. Nevertheless, the market structure deems the distinctiveness of an oligopoly and Meru faces competition from a small number of firms that dominate the industry. This industry has stringent prices due to government regulation and therefore Meru has adopted non-price competition strategies such as brand loyalty and product differentiation such as quality service.
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