Some consumers may believe that when a firm can practice perfect price discrimination, the outcome is less than perfect for the consumer because the consumer could pay more for the product or service than the market value. Another reason why some consumers may believe that the outcome is less than perfect when the firm practices perfect price discrimination is because consumers have different ideas on the amount a product or service is worth. Take for example, a person making minimum wage might think something is worth more than someone who is a
This solution provides Endius with the lowest risk solution for bringing the forceps to market in the short-term, and helps build the long-term infrastructure to ensure the company's long-term success, as well. Strengths The primary strength of Endius is its management team. Davison has expressed a willingness to loan Endius the requisite cash to continue development, but his inclination is to work with Product Genesis since he knows their track record and is comfortable that they can complete the work on time. The cost is lower than that associated with an external product development team, which can be a key concern to a company with cash flow problems. The result is that patients recover faster and with less pain, and the procedure itself can also be less expensive than traditional approaches.
Predatory pricing is an anticompetitive strategy that indents to drive competitors out of the market and gain monopolistic profits. The logic of predatory pricing is very simple. The predatory firm first lowers its price, to an extent which the revenue of the product does not cover the costs. The competitors must then lower their prices below average cost, thereby losing money on each unit sold. If they do not cut their prices, they will lose competitiveness; if they do cut their prices, they will eventually go bankrupt.
Market Extension Merger: Market Extension Merger is a kind where the companies selling same or similar product lines but in different market sectors. The main idea for market extension merger is to gain access to a wide market area which in turn increases the customer base. Example: Amazon and Alibaba 4. Product Extension Merger: A type of merger that combines the companies which sells the related or similar products in the same market segments. This merger allows companies to combine their products and gives access to a wide set of customers which implies to earn huge profits.
INTRODUCTION “The moment you make a mistake in pricing, you 're eating into your reputation or your profits.” - Katharine Paine The above quote from the founder of KDPaine & Partners LLC and The Delahaye Group is quite apt. Pricing is quite often ignored by executives & leads to people not understanding how it can change the competitive game in an industry. Most executives believe pricing to be a zero-sum game, i.e. price increase shall lower volume of sales thus in turn hurting the margin gain, but the other way round need not necessarily be true. This problem arises owing to the setting of prices based on cost-plus basis rather than a customer value point of view basis.
One way to get competitive advantage is through Cost Leadership. This means that one can gain advantage by simply selling a product or a service at a reasonably low price, a price that you can handle. Information System can help a business gain this advantage easily. As Dr-Othman Alsalloum , who Working at King Saud University, stated, “Use information systems to achieve the lowest operational costs and the lowest prices.” Wal-Mart is an example of this competitive advantage; it has lower prices than any other market. The reason behind this is that they use Information Systems to maintain efficiency in their supply chain.
The traditional response models are insufficient to target the highest-spending or most profitable customers. In fact, response models can potentially target the most responsive customers who actually spend the least, especially when promotional offers involve free items or when there is no purchase requirement. To evade the unnecessary marketing costs associated with targeting lower-spending and less profitable customers, statisticians in the financial service industries have enhanced response models by extending the models to predict customer spend as well as customer response. It is important to briefly mention that within retail businesses, this development has been considerably slower to emerge. These models predict combinations of customer response, sales and profit at the individual customer level.
I would argue that Wal-Mart’s employment practices are immoral based on different philosophies which are utilitarianism and justice. Utilitarianism seeks the greatest good for the greatest number of people. The “good” here can be referring to “happiness” (Fraedrich, 2013). Based on utilitarianism, Wal-Mart’s ethical standard is immoral as the consequences failed to benefit the employees. Although by underpaying the employees, the stakeholders would gain more profits, however it has resulted in significant unhappiness among the majority of the employees.
What they fail to realize is, however, in a case where “welfarism” correlates with money, the fact they proved that by imposing unfairness, our society is “better off” financially is redundant. Indeed, by imposing an unfair rule which would remove safeguards in order to increase conviction rates, our system would spend less money on proving the guilt of the accused. One has to ask themselves then how fundamentally flawed our judicial system would be if it was centred on the kind of utilitarianism which says money is more important than people’s right to be judged