This article provides tips on how to write an essay on Business Economics and Pricing Concepts and Strategies.
Management students are taught all the basics of management concepts and economics to flare well in their careers where they actually have to apply the theoretical knowledge and concepts into the issues faced by the business. The student can therefore, while pursuing their studies can try and envisage practical situations of different situations faced by businesses whether small or large. This can be done by looking into cases of companies to know how the issues were tackled after considering all aspects while still facing the challenge of changing economic situations, governmental policies and regulations.
Small businesses usually end up with losses due to wrong pricing strategies. Let’s learn more about pricing concepts and pricing strategy in actual business scenarios with the help of economic theories and principles.
Businesses run for the objective of profit maximization and through concepts of laws of demand and supply and elasticity of demand, they can arrive at optimal price that would end up helping them in meeting the objectives which could be profit maximization, revenue maximization, equilibrium or normal profit targets and price discrimination. The business objectives can differ due to changing market positions such as monopoly, perfect competition, oligopoly etc. Each market condition varies due to number of buyers and sellers, product differentiation and entry and exit conditions on the firm. Firms can make profits or just operate at break even or can be operating with losses or may eventually have to shut down operations. With the help of our experts, students can include companies from different industrial areas to cover each market type and explain the pricing strategy to be followed and its importance.
The factors that govern pricing strategy of any company could be availability of substitutes, economies of scale, branding, customer expectations, ease of innovations, market volatility, government policies, taxes, plant location etc. The study can made more conclusive by studying industries like hotels, pharmaceutical companies, cosmetic industry, FMCG product companies etc.
This study can further be extended by comparing small business to large business which has already established market position. This is when our experts will go into deeper aspects like price setting pattern and the influence of cost, competition and market stability on the same. Price discrimination is a strategy adopted by bigger firms to gain more from customers who possess different buying power, have different product expectation. This is concept further extends to facts like customers with different educational qualification and the time at which they require the product or service. These practices are prevalent in service based sector like accounting, lawyers, doctors etc. The impact of the service provider creating a brand for him can be chosen as a separate aspect of study.
How firms use dynamic pricing and product bundling can also be of interest. The example of a tour packaging company can be taken as a case study.
With the experience gained from years of research, experts from our essay writing team at http://gr8researchpaper.com will be able to help you with essays on all the above aspects of pricing concepts and strategies.