Employee Empowerment Culture and Penetration Pricing - Essay Example

Penetration pricing in the marketing context is considered as a strategic measure through which the company can fix their products or services price to be relatively lower than the existing market price. It can facilitate drawing customers at the initial phase of a product launch due to the lower price of the product. Penetration pricing can be defined as the measure implemented by the company while launching new products in the markets in order to attract customers. This measure can help the company to increase customers’ demand and loyalty for their products and services (Holden & Nagle, 1998).

Contextually, in accordance with globalization, the business markets on a global basis have become competitive where a company needs to implement new innovative ideas into its operational process in order to sustain in the market with continued growth. In relation to this context DHL, a logistics company has incorporated the process of employee empowerment culture in Nigeria in order to sustain and to compete with its rivals in the market. In this process, DHL’s HRM considered two measures which included a hall session and suggestion box for all the employees in order to engage them in the operational process (Myers Leadership, 2012).

In relation to penetrating pricing, Microsoft implemented the pricing strategy into their business process in order to compete with the rivals through increasing customer demand for their products and services. With the help of this strategy, Microsoft has lowered its communication suits product prices in the market in order to attract customers and to increase their product demand (Perez, 2012). DHL’s considered measures followed under the culture of employee empowerment are hall sessions in which all the employees are gathered inside a hall and the HR manager discusses and shares information related to the company’s strategic planning with the employees.

Furthermore, DHL has also introduced a suggestion box with which the HR manager collects personal information from employees regarding any innovative ideas or problems that the employees are facing. Additionally, every letter is answered by the management through the ‘monthly employee’s newsletter (Myers Leadership, 2012). Microsoft has lowered its communication suits’ price after eight months from the date of launching the product by considering the pricing strategy i.e. penetration pricing.

This is because Microsoft wanted to increase the customer base and its product’s demand in the market in comparison to Google Apps (Perez, 2012). By introducing the employee empowerment culture in the business process, DHL has been able to become one of the best business companies in Nigeria (Myers Leadership, 2012). According to the market analysis, Microsoft has been able to increase its customer base to a certain extent as compared to the past after implementing the penetration pricing strategy (Perez, 2012).

After analyzing these situations, it can be stated that in order to incorporate employee empowerment culture, the company could conduct a half-yearly performance appraisal session in which the employees will be rewarded with bonus or awards among others based on their performance in terms of providing innovative and quality suggestions for the betterment of the company. Moreover, in relation to penetrating pricing, the company can provide more quality services along with reducing the price of the products.

In keeping with the discussed instances, the company could introduce a Customer Relationship Management (CRM) strategy in order to develop the business processes. CRM can be observed as the process of building a positive relationship with the consumers by providing the demanded products and services within the specified time and with quality. With the help of this strategy, a company will be able to promote their brand name along with maximizing the profits (Lang, Paravicini, Pigneur, & Revaz, 2002).

Thank you for your consideration.