Question

"The success or failure of a Business Depends to a large
extent on its Price Policy.". Discuss?​

Answer 1

Answer:

We can take the example of home-grown brand Parle. Parle has maintained to be #1 biscuit company through its cost leadership. The packet of glucose biscuits still comes in 5 Rs. as it was earlier. To overcome costs, what they did, they reduced the size of biscuits to around 1 gm per biscuit (hardly noticeable to us in case of individual biscuits but overall packet weight says it all). In this way cost reduction at parle still makes it cost leader in its segment. Going with the flow, rivals have adopted the same thing and thus competing with Parle at the same price bar.

hope it helps u..!