Competitive strategies in the Italian pasta industry

Abstract

The aim of this research paper is to analyse the Italian pasta market with a specific focus on the competitive strategies played by different brands. We applied a theoretical approach to statistical data from preeminent sources. For each company, we calculated an index in order to infer the price elasticity. From the results, we deduced that for some of the companies analysed, the value assumed by the index has led to a cross price elasticity rather than own price elasticity. For these companies, the economic results are influenced mainly by the competitors’ price policies rather than from their own price policies. That indicator I·, whose calculation is straightforward, is able to relate the variation of quantities sold to the variations of sales revenues. This is an index of strength or vulnerability of each company that gives a measure of competition. The effectiveness of the non-price strategies will be undoubtedly reflected on the parameter I·.