Zomato is food serving international company that tells about restaurant according to their rating from where you can order food online. So nowadays zomato and swiggy is giving tough competition to each others. so now will talk about economic principles that zomato follows.
Price discrimination
zomato follows very unique price in comparison to its competitor. just because in tough competition zomato cannot compromise with price as zomato getting large funding so there is no problem with cost. Hence, zomato using price discrimination. zomato is giving very unique price on delivery on food and also not charging extra cost from restaurants.So price discrimination is that keeping zomato edge over the competition.
Type of market
Zomato is in that market is a monopolistic competition market. So in this market many seller and large number of buyer, nature of product is also differentiate in this market. So zomato comes in this market where swiggy and uber eats are its competitor.Everyone is provide different product and different services in the market.
Taste and Preference
As customer have different taste according time and it keeps changes. So what zomato is doing here trying to add more and more hotels so customer will have more option to according to their taste. Here zomato is following different principle to get over on competition.
People respond to incentives
zomato is consider this principle very effectively because in this sector without incentives cannot earn profit so here put unique incentives that can attracts more and more customer. zomato is doing great in this and providing great incentive to customer just like off on first order etc.
Ordinal utility
This is principle that zomato follows and provide ranks according to there ratings by customer. So from there customer will have right option to choose. Zomato is getting more benefits from this approach because customer want good things in first time because they have more option on hotels. By this zomato is earning high profit.
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