AMUL

In INDIA there are few companies which stands out and the name AMUL comes one among them. It is one of the company which we can say represents INDIA at the world level. And also I come from a business background and my father is a dealer of dairy products. So, that’s also a reason which instigated me to take this industry to write a blog on this regard.

Here are my 5 economic concepts regarding the AMUL-

1.Economies of Scale- Economies of scale are the financial advantages that a company gains when it produces large quantities of products without increase in the inputs. They are important because they mean that as firms increase in size, they can become more efficient and as a result can have an access in the market and also can control the market.

2.Economies of Scope- It is defined as the concept in which the unit cost of a product will decline when more products are made through common inputs and this diversification leads to cost savings. For example, Amul produces different varieties of milk, dahi, tetra pack of milk,butter, fresh cream, etc. so, they are all somewhere interrelated to each other and share common inputs

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3.Oligopoly- An oligopoly is a market structure in which few firms dominate although there may be many other small firms in the market. Many other firms compete with Amul in a particular region, whereas few are there when it comes to pan-INDIA.

4.Price of Substitutes- When the price of one good changes the responsiveness in the quantity demanded of other good. For example, if a product of milk suppose price of Amul TAAZA increases, people may shift to other brands whose price has not increased,such as METRO DAIRY also a milk product in WEST BENGAL.

5.Product Differentiation- Marketing of goods in such a way such that customers are willing to buy the product, and the differences in the product of the company compared to other products of similar quality of other brands. For example, Amul TAAZA focuses on persons who wants to be nutritionally fit. Amul SLIM n TRIM focuses on people of old ages, Amul tea-special focuses on specially making of tea. So, basically these are the different components in which the company wants to identify the differences in the product so as reach their customers.