ABC Ltd has started offering a discount of ₹1000 on shopping of worth ₹10000 or more. In response to it, XYZ Ltd. started a scheme of buy 1 get 1.

Which of the following is indicated in the given statement?

Strategy

The correct answer is option 2- strategy.

The statement indicates a "promotional strategy" or "sales promotion" by both ABC Ltd and XYZ Ltd. ABC Ltd is offering a discount of ₹1000 on shopping worth ₹10000 or more, which is a form of price promotion. On the other hand, XYZ Ltd is implementing a "buy 1 get 1" scheme, which is also a promotional strategy aimed at encouraging sales. Both companies are using these promotions to attract customers and stimulate purchases.

A strategy provides the broad contours of an organisation’s business. It will also refer to future decisions defining the organisations direction and scope in the long run. Thus, we can say a strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions, (i) determining long term objectives, (ii) adopting a particular course of action, and (iii) allocating resources necessary to achieve the objective. Whenever a strategy is formulated, the business environment needs to be taken into consideration. The changes in the economic, political, social, legal and technological environment will affect an organisation’s strategy.