Pricing strategy of aci bangladesh ltd

ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction.

Pricing strategy of aci bangladesh ltd

Considering the types of products and the relative market conditions it can be remarked that SQUARE Pharmaceutical Limited Bangladesh is operating its business in monopolistic competition. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers oligopolists.

The word is derived from the Greek for few sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others.

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The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants.

This causes oligopolistic markets and industries to be at the highest risk for collusion. Oligopoly is a common market form. As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized.

This measure expresses the market share of the four largest firms in an industry as a percentage. Oligopolistic competition can give rise to a wide range of different outcomes.

In some situations, the firms may collude to raise prices and restrict production in the same way as a monopoly. Where there is a formal agreement for such collusion, this is known as a cartel.

Firms often collude in an attempt to stabilize unstable markets, so as to reduce the risks inherent in these markets for investment and product development. There are legal restrictions on such collusion in most countries.


There does not have to be a formal agreement for collusion to take place although for the act to be illegal there must be a real communication between companies — for example, in some industries, there may be an acknowledged market leader which informally sets prices to which other producers respond, known as price leadership.

In other situations, competition between sellers in an oligopoly can be fierce, with relatively low prices and high production. This could lead to an efficient outcome approaching perfect competition. In particular, the level of deadweight loss is hard to measure.

The study of product differentiation indicates oligopolies might also create excessive levels of differentiation in order to stifle competition. In an oligopoly, firms operate under imperfect competition and a kinked demand curve which reflects inelasticity below market price and elasticity above market price, the product or service firms offer, are differentiated and barriers to entry are strong.

Following from the fierce price competitiveness created by this sticky-upward demand curve, firms utilize non-price competition in order to accrue greater revenue and market share.

Below the kink, demand is relatively inelastic because all other firms will introduce a similar price cut, eventually leading to a price war.

Therefore, the best option for the oligopolist is to produce at point E which is the equilibrium point and, incidentally, the kink point. A year later the establishment of the second unit followed. In Bangladesh there are some other companies working in this sector.


Following names are the most prominent: Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.Corporate Information ACI Plc of UK had a pharmaceutical business in Bangladesh.

In the business was sold to management and the name of the Company changed to Advanced Chemical Industries (ACI) Limited.

Pricing strategy of aci bangladesh ltd

Internal Factors Affecting Pricing Decisions. There are some internal factors affecting pricing include the company’s marketing objectives, marketing mix strategy, costs and organizational considerations.

Advanced Chemical Industries (ACI) Ltd November – May (7 years 7 months) ACI Cnetre, Tejgaon I/A, Tejgaon, Dhaka • Develop and implement the marketing Marketing Manager.

ACI Motors is a big supplier of farm machineries, light commercial vehicles, high quality diesel engines and pumps to ensures complete solution to the farmers with the introduction of the agrimachineries.

ACI was born as a subsidiary of Imperial Chemical Industries in After the liberation of Bangladesh, the company became a registered company in Bangladesh and named themselves ICI Bangladesh Manufacturers Limited. They started their journey as a Private Limited Company.

Companies such as ACI Ltd succeed with this strategy by featuring low prices on key items on which customers are price-aware, Like ACI Salt, Flour, and Mosquito Coil, Spices, Vegetable oil etc while selling other merchandise at less aggressive discounts.

Pricing strategy of aci bangladesh ltd
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