Pricing Strategy

Abstract: This 12 page paper examines a case provided by the student. Stockholders of an organization have suggested that the organization lower the price of product or service by 20 percent as a means to maximize profit by increasing market share. The paper uses a break even analysis, consideration of price elasticity and the use of Porters Five Forces to consider if lowering the price is the best strategy for increasing profit and/or market share. The potential reactions of competitors are also considered. The paper is written to show the student the different aspects that need to be examined when looking at pricing strategy and shows them how to undertake this, with example calculations. The bibliography cites 7 sources.

Filename: TEprices.rtf

Pages: 12

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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