PPT-Economics of the Firm Strategic Pricing Techniques

Market Structures Recall that there is an entire spectrum of market structures Perfect Competition Many firms each with zero market share P MC Profits 0 Firms earn a reasonable rate of return on invested capital. . Advantage. 1. . Chapter . 1. . Introduction . to Strategic Management. . PART I. STRATEGIC THINKING. Introduction to Strategic Management. Key Terms. Competitive advantage. . Derived from the successful formulation and execution of strategies which differ and create more value than competitor strategies. STRATEGY FORMULATION. CHAPTER 7. ACQUISITION AND RESTRUCTURING STRATEGIES. THE STRATEGIC MANAGEMENT PROCESS. . . . . KNOWLEDGE OBJECTIVES. . . KNOWLEDGE OBJECTIVES. TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES. McGraw-Hill/Irwin. Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.. Oligopoly Markets. Interdependence of firms’ profits. Distinguishing feature of oligopoly. Arises when number of firms in market is small enough that every firms’ price & output decisions affect demand & marginal revenue conditions of every other firm in market. Chapter 11. Pricing Strategies for Firms with Market Power. Overview. I. Basic Pricing Strategies. Monopoly & Monopolistic Competition . Cournot Oligopoly. II. Extracting Consumer Surplus. Price Discrimination . STRATEGY IMPLEMENTATION. CHAPTER 12. STRATEGIC LEADERSHIP. THE STRATEGIC MANAGEMENT PROCESS. . . . . KNOWLEDGE OBJECTIVES. . . KNOWLEDGE OBJECTIVES. SUCCESSION AT HP: CAN THE NEW CEO SAVE THE COMPANY’S SOUL?. : www.iata.org/economics 1 CARGO CHARTBOOKOVERVIEW IATA Economics: www.iata.org/economics 2 Cargo eChartbook – Q 1 2015 Economic Outlook & Traffic GrowthThe global economy is expected to grow fa Overview:. Strategic leadership & top-level managers importance. Top management teams and effects on firm performance. Managerial succession process. Value of strategic leadership in determining firm’s strategic direction. Summary of lecture. Introduction. Whose responsibility is it. Why it matters. Definitions . Business mission. Strategic Objectives. What is Strategy?. Formulating Strategy. Primary Determinants of Strategy. STRATEGY FORMULATION. CHAPTER 7. ACQUISITION AND RESTRUCTURING STRATEGIES. THE STRATEGIC MANAGEMENT PROCESS. . . . . KNOWLEDGE OBJECTIVES. . . KNOWLEDGE OBJECTIVES. TECHNOLOGY GIANTS’ ACQUISITION STRATEGIES AND THEIR OUTCOMES. Market Skimming. Market Skimming. High price, Low volumes. Skim the profit from the market. Suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out). Learning Objectives. Learning Objective 15.1 . Identify three methods that firms use to set their prices.. Learning Objective 15.2. Describe the difference between an everyday low pricing (EDLP) strategy and a high/low strategy. . ?. Pricing . is a marketing function in which both a buyer . and. a seller . perceive the . most favorable value . for a good or service. 2. Price– You get what you pay for…. What does that phrase mean to you?. (20 marks). Pricing methods and strategies. General considerations and objectives of pricing policy.. General consideration for pricing policy.. What is a price?. -- price is the amount of money charged for the good or service.. Course Code: F010101T. By:. Dr . Pravin. Kumar Agrawal. Assistant Professor. School of Business Management. CSJM University Kanpur. Course Outcomes. The aim of the course is to build knowledge and understanding business economics among the...