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

Logical analysis of daily business, Jane Parton, the proprietor of Deli Pa...

Jane Parton, the proprietor of Deli Parton, sells specialty breads for $3.95 each.  She buys these from a baker-supplier for $2.45 per unit. Since Jane wants to maintain Deli Pa

Capital expenditure program, Capital Expenditure Program Stanaway had a...

Capital Expenditure Program Stanaway had assumed responsibility for the Glenlines Plant only twelve months previously and undertook a detailed review of the operations and disc

Discuss the areas in which libraries can cooperate, QUESTION 1 Library ...

QUESTION 1 Library cooperation is a well-integrated activity in developed countries. Discuss the areas in which libraries can cooperate. QUESTION 2 Ranganathan has sugg

Interview question for manufacturing or service, Company background informa...

Company background information: which sector and industry (manufacturing or service, public or private) organizational characteristics (large versus small, average age

Joint negotiating panel and dual recognition, Question 1: (i) Define a...

Question 1: (i) Define a "bargaining unit". (ii) What are the factors, advocated by the Code of Practice of the Industrial Relations Act, 1973 which should be taken into a

Marketing, give a full report on the tactics and strategy on a start up bus...

give a full report on the tactics and strategy on a start up business

Basic parts of an effective presentation, Question 1: "Planning, organi...

Question 1: "Planning, organising and controlling are the key functions of management." Discuss Question 2: Analyse the variety of skills that managers must display to

Improve business processes, Discuss why has direct marketing continued to g...

Discuss why has direct marketing continued to grow? Using Internet technology to improve business processes • Discuss how this technology can unlock new business opportunities •

What is non-verbal communication, QUESTION 1 (a) What is non-verbal com...

QUESTION 1 (a) What is non-verbal communication? (b) Non-verbal communication is a complex process leading to misunderstanding and misinterpretation. Examine this statement

Potential impacts of an agricultural project, (a)(i) State the major advant...

(a)(i) State the major advantages of using matrices for conducting EIAs.   (ii) Explain how overlays are essential tools for assessing potential impacts of an agricultural proje

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