Question

Describe how cost, demand, competition, legal considerations are taken into account when Loblaws sets prices.

Answer 1

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Loblaws companies limited is a Canadian based supermarket Store that deals in every kind of food product and is in many states and different countries. Fixing the price is a kind of a crime that is difficult to detect but it is done on a large scale around the world. If the price is set by the company itself then the cost of making the product is less and the price which is set is considered high because the main motive behind this step is to earn more money. Firstly, create the demand in the market and when the demand is high they release the product at a high price so that they can earn more profit by selling those products. The competition is also high at this time and to take the competitive advantage from their competitors they do this type of thing which helps them to complete their competitors and go one step ahead of them. It is very tough to detect this crime and if it is detected then various legal consideration is charged on the company and it becomes a serious issue for the company as it is not acceptable in any country. The case runs in the court for a long time and the company prepared well to fight against the court.