... are expensive. If the competition structure is an oligopoly, then there is interdependence between firms, as they cannot ignore the pricing policies of the rivals. In monopolistic competition firms have some influence over their price because of their own clientele and USP's. The firm also has to see what the stage of the PLC is. During introduction they can either choose to skim or penetrate the market. The firm would do the former if the product has a strong USP, is technologically advanced or trendy or is operating in a niche market. Penetration will be done if the demand is elastic or the good is an FMGC. At the maturity stage the company may choose to skim the market instead of penetrating, because it has created brand loyalty; or it can penetrate the market instead of skimming, because the product faces competition or new technology has been introduced. The Nokia ...

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