Saturday, September 22, 2018

Dominos-Our Favourite Pizza Brand

Today let us take a look at the concepts underlying one of our favourite pizza brand -'Dominos'
1. Economies of scale
-'Dominos' invest in larger scale of production to cute down production cost per unit . This is the reason why Dominos can offer pizza at an affordable rate.
2. Economies of scope
Besides pizza they also offer other items like wraps, breads (products that consume almost similar inputs) inorder to spread out production cost ,so as to lower them.
3. Monopolistic Competition
They are faced with monopolistic competition from firms like US pizza , Dominos Pizza.
4. Determinants of demand(Advertising)
Dominos spend huge amount on advertising in order to attract the customers.
5. People respond to incentives
Dominos offer a variety of incentives like 50%discounts on Wednesdays , that attracts customer a lot.

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