Professional Documents
Culture Documents
Diplomacy v. Warfare
Establish Policies
Long-term orientation
Conditions in Favor of Intense Price Competition
(A) High interbrand price sensitivity among buyers -- sales
increases from price cuts are at competitors expense.
(B) Low competitive barriers to entry or growth -- new
firms with low incremental costs can enter industry and
build market share.
Conditions Against Intense Price Competition
(A) Differentiated brands with low interbrand price
sensitivity
(B) Firms with a sustainable low cost advantage
Management philosophies
Company objectives/goals
Large portion of
sales concentrated
in few buyers.
Communication of Intentions Regarding your
Pricing Policies