Pricing Decisions
Describe the strategic implications that would need to be considered in setting a price for that product
The public company selected for this analysis is Coca Cola Company. The identified product of the company is the Coca-Cola 20 fl oz bottle, which can be typically obtained from a convenient store, vending machine as well as super market. There are strategic implications that would need to be taken into consideration in setting the price of this particular product, which include the following:
1. Competition in the market
Rivals in… Continue Reading...
Pricing Strategy
There are several critical factors that affect making pricing decisions: customers, competitors, regulations, government laws, the overall economy, and production costs and some of the most important variables to look at when deciding on a pricing strategy. As Zeng, Dasgupta and Weinberg (2016) put it, differentiation is key to developing a pricing strategy that works for a company that has to set itself apart from competitors in order to secure market share. For Tesla, which is the subject of this paper, the electric vehicle (EV) market is beginning to heat up as competitors come into the business with… Continue Reading...
6.20% to 30.27%. The decline in both SunPower’s profitability and market share in this case could, therefore, be used as a classic example of poor pricing decisions.
Gradual Decrease in Module Price
Over the 18-year period, SunPower increased its market share from 3.41% to 40.36%. Similarly, the company’s annual net income increased from $39.08M to $43.84B. The progress is in this case very appealing. Having started off with a module price of $0.15, SunPower gradually reduced its price of PV panels in $ per kilowatt-hour over time in a move that saw it not only protect its market share, but also enhance its profitability. It is important to note that looking at Appendix 1, during… Continue Reading...
