Big Bazar Price Control on Customer Demand
Roll number: EMBA1/APRIL13F/1001
Name: Santosh Kumar Mishra
Subject: Elective –Retail management
Case Study Project :-As a retail manager how will you achieve business by decision making focused on price offer and demand pressure from customer ,on availability of product ? Examine the strategy you will adopt in retail chain business (Big Bazaar).
Answer: As a retail manager in Big Bazar we need to understand the organized retail and how we operate in India along with the SWOT analysis, Then I will look for the Price mix and factors related to this.
What is Big Bazar and why it is like this :- Basically Big bazaar is designed as an agglomeration of Bazar or Indian Market with cluster offering wide …show more content…
I need to give equal importance to both the forces of demand and supply in determining price and output under perfect competition. Both the marginal utility and marginal cost took part in determining price. I need to compared price determination with the act of cutting with a pair of scissors.
Both the blades are necessary for cutting a piece of paper although the lower blade acts, more in actively than the upper blade. No piece of paper can be cut by the help of individual blades. Thus the price under perfect competition is determined by the twin forces of market demand and market supply.
On the demand side it is buyers and on the supply side it is sellers who take part in the process of determining prize. The buyers are always willing to offer lower price and the sellers always like to sell at a high price. Transaction will be effective only when price is acceptable to both the opposite parties. For the better analysis of price determination the demand side and supply side are to be discussed as:-
The demand curve of a commodity slopes downward. This expresses that with the rise in price quantity demanded rises and with the rise in price quantity, demanded falls. A consumer is always guided by the marginal utility in buying a particular commodity. When the quantity demanded of a commodity rises he will be prepared to pay less and less as the marginal utility of the commodity continues falling.
Thus the price of the commodity is paid accordingly.