Web design firm and market structure.Oligopoly or Perfect competition?

[preston]

My firm, is a web design firm, located in sri lanka. It is one of the top ten companies in the industry. But there are over 200 small start up firms of which about 25% burn out after a few months.

Where exactly does my company fit in, in the national web services market? Is it Oligopoly or Perfect competition? Anything else you could ad... i need a write up for my MBA. THanks

[gilleasbuig]

There is no such thing as perfect competition. The degree to which your industry suffers from imperfect competition can be revealed by the extent to which you are able to set the prices for your services versus the market dictating the price.

[lancelot]

It really depends on share of the market that top 5 firms hold.
If it's over 75%, you have oligopoly, if it's under 50%, it's probably more like competition.

I am pretty sure web design is not very concentrated, since it's fairly easy to start a new firm (if you have good people)