Explain how the concept of elasticity, Business Management

Assignment Help:

QUESTION

Domino's sold a 12" Pizza for Rs 265. The table below refers to the for price range for Domino's and Pizza Hut. The high price was attributed to the high quality of ingredients used. For instance, Domino's sourced its Peperoni and Jalapeno needs from Australia and Spain respectively. However, with competition increasing from Pizza Hut, Domino's introduced price cuts, discounts and freebies to attract the customers. In 1998, Domino's introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. The demand was overwhelming and the company sold close to 5000 pizzas in the first week of its launch. During late 1998, both Domino's and Pizza Hut were trying to lure the customers with discount coupons by issuing such coupons through several schemes. Said an analyst, "Even then, the prices are too high. Globally, fast food chains only succeed when they bring their prices down to the same level as the street food."

           Table: Pizza Price Comparison

Company                           Price Range (Rs)

Domino's                                 39-265

PizzaHut                                  75-350

Explain how the concept of elasticity can be used to determine the level of price competition between Domino's and Pizza Hut?


Related Discussions:- Explain how the concept of elasticity

#title research methods, #question;how to write a research problem in a cle...

#question;how to write a research problem in a clearly research language?

Sales territory management, Sales Territory Management: To be efficien...

Sales Territory Management: To be efficient and effective the outside sales staff requires to be well managed and focused in their daily activities. The way they direct their

Markov analysis, on jan 1,2009 klosman firm held 40% of its total market an...

on jan 1,2009 klosman firm held 40% of its total market and two other firms A and B held 40% and 20% respectively.based on a study conducted by a marketing reserch firm, the follow

Benefits of oral business communication, What is oral business communicatio...

What is oral business communication? Explain its benefits to the organisation and to the individual employee.

Time management wizard, Problem Organisations and individuals could der...

Problem Organisations and individuals could derive great benefits from an all-in-one Time Management Wizard. Although there exist various tools such as Calendars and Timesheets

Strategic direction perspective, The IMP focuses on the analysis of the cur...

The IMP focuses on the analysis of the current position of an organisation with which you are familiar and the valuation of managerial alternatives (decisions) for maximising its v

Why people resist organizational change, Question : Reynolds (2004) sug...

Question : Reynolds (2004) suggested that to create a learning culture that acts as a growth medium it is necessary to develop organizational practices that raise commitment am

What do you meant by the term job satisfaction, Question 1: (i) What do...

Question 1: (i) What do you meant by the term "Job Satisfaction" ? (ii) Discuss the importance of Job Satisfaction in an organisation. Question 2: (i) Differentiate

Measuring kanban, Measuring Kanban  Two commonly cited methods of measu...

Measuring Kanban  Two commonly cited methods of measuring the performance of a manufacturing process are flow through time and work in progress inventory levels. Flow throug

Definition of entrepreneur by harbison and peter f. drucker, Describe the d...

Describe the definition of entrepreneur according to Harbison and Peter F. Drucker. According to Harbison : "An entrepreneur, it is not an innovation but a business builder

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd