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Responding
to Competitor or Economic Threats
During a seasonal
slowing of demand, your competitor has dropped their price by 13% to
maintain volume. Several of your customers are threatening to switch
if you don't match the price cut. Your top management team is divided.
What are your options for action? What opportunities and threats are
inherent in each? What is the financial impact of the alternatives?
What risks must be considered? What is your competitor's likely response
given the actions you propose to take? We can help you sort through
your options to make the best decisions. And we will stand by your side
through implementation as competitive dynamics unfold.
So,
how then do you improve strategic and financial performance in the presence
of intense competitive pressure?
At Market Leaders
Group we find that there are many opportunities through pricing initiatives
to achieve such performance improvements. Here are a few:
- Identify the
profit maximizing price structure and strategy for new product or
service launch.
- Maintain a profit
maximizing price structure and strategy across the product class life
cycle and through the technology adoption cycle.
- Utilize segmentation,
bundling and price positioning strategies to differentiate offerings
for target markets, simultaneously maximizing value received by the
customer and price capture by the firm.
- Implement pricing
strategies to achieve business objectives despite implementation hurdles,
e.g. channel complexity and conflicts.
- Use strategic
pricing to optimize the market and financial performance of a business
strategy.
- Estimate profit
opportunities and risks associated with a change in pricing strategy
and structure.
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