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Pricing Strategy - Term Paper Example

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The author focuses on pricing strategy which focuses on three different approaches namely; cost-based pricing which is determined by adding profit part on top of the cost of producing of a product. The buying prices are set by adding a percentage to the rate of manufacturing or purchasing a product…
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Pricing Strategy
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Download file to see previous pages Pricing is very important for the organization and aims at maximizing current profit, maximizing current revenue, maximizing quantity, recovery of partial costs, quality leadership; it helps in business survival and to maintain the status quo in business (
Apple Inc, one of the companies that use technology to win the price war has successfully experienced rapid growth in the market. The company produces and sells a different kind of consumer electronics products ranging from personal computers, commercial servers, the digital distributor of media content and computer software. The company’s core products are a smartphone, iPhone, iPod portable media players, iPod table computers and Macintosh computers. Apple Inc, headquartered in Cupertino, California, has a long history dating back from its formation on April 1, 1976 (
The American multinational corporation has gone through tuff market conditions resulting from financial challenges to stiff competition in the market. By revenue rating, Apple Inc is the world’s second largest information technology firm after Samsung Electronics. The company is also the world’s third-largest mobile phone producer after Samsung Electronics and Nokia. Apple Inc has 394 retail stores in fourteen countries and also has the online Apple Store and iTunes Store. By market capitalization, Apple Inc is the second-largest public commercial firm in the world, with a predictable value of US $ 414 billion. The company currently has 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide (
Pricing strategy can focus on three different approaches namely; cost-based pricing which is determined by adding profit part on top of the cost of producing of a product.    ...Download file to see next pagesRead More
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Pricing Strategy

... is considerably high since it is only in the month may that the hotels products experienced an average of about 50% occupancy this justifies the move by the hotel review it price so as to reflect this relationship (Smith and Smith 289). Another pricing strategy showcased in this case is the level of competition in the hotel industry in the region. There are only five-star hotels serving a wide, thus, the completion between the hotels is not intense as demand is in excess of supply. This implies that, for a hotel to be more competitive than the other hotel so that it can control the large proportion market, therefore, they must consider the pricing strategy so as to maximize on large production thus benefiting from the economies of scale...
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... in using on his or her car Reference Benjamin,R and Rolf,W. (1995). Electronic Markets and Virtual Value Chains on the Information Superhighway. Sloan Management Review. 62-72. Chaloupka FJ. (1999;1). Macro-social influences: the effects of prices and tobacco-control policies on the demand for tobacco products. Nicotine Tob Res. 105-109. Federal Trade Commission (2012) Federal Trade Commission Cigarette Report for 2011, Washington: DC. Jennifer.,Kreslake, J.M., Ganz, O., Pearson, J.L., Vallone, D., Anesetti-Rothermel, A; Haijun, X; Kirchner, T.R. (2013) , American Journal of Public Health, 103(10), pp. 1902-1909. Maxwell JC (2012) The Maxwell Report: Cigar Industry in 2011, Richmond: VA. Maxwell JC (2012) The Maxwell Report: Second Quarter...
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