Flipkart founded in 2007 has it's head quarters in bengaluru has grown very fast within 11 years. It uses all strategies and ideas to grow the company. We can find various economic concepts in the workings of flipkart.
DEMAND:
In flipkart, we can see when one product's price decreases, people are buying that product more and more and then those products get categorised into popular products and sooner the get lower in stock. So, law of demand is applied here.
CARDINAL UTILITY:
In flipkart, cardinal utility is applied. Flipkart uses cardinal utility to measure the customer's satisfaction. After the delivery of the product is done, they ask us to review the product for which we give them ratings out of 5.
OPPORTUNITY COST:
In flipkart, we are provided with a wide range of products. And we have to select among them so we have to trade off. And we have to choose the best product and give up the next best alternative product. Suppose, we have to buy a microwave oven. And we are choosing between LG and Bajaj. LG is offering it for Rs. 4999 and Bajaj is offering it for Rs. 3990. If we choosing LG microwave oven for Rs. 4999 then our opportunity cost will be Rs. 3990(cost of bajaj microwave oven).
PERFECT COMPETITION:
Flipkart uses perfect competition concept. In flipkart, there are many sellers who sells homogenous products. And we see more and more sellers getting added in the sellers list. For 1 product, we can see many sellers. So if we missed a product if it goes 'out of stock'. Then we can get other from other sellers.
PRICE DISCRIMINATION:
Flipkart uses price discrimination by it's sellers. As there are many sellers selling the same product but at different price. Each and every seller has different price for either product or delivery charges. Suppose, 2 sellers are offering a product at Rs. 500 but one has delivery charges Rs. 49 and other on have Rs. 69. So, in this way the do price discrimination.
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