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. 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 . 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. SUBJECT. : . . ECONOMICS AND MANAGEMENT. DEPARTMENT :EC . SEM:3. rd. PREPARED BY: . PARIHAR SHIPRA A. (130500111012). PARMAR KINYARI P. (130500111013). PATEL DHARA H. (130500111014). GUIDED BY: . David J. . Teece. ; Gary Pisano; Amy . Shuen. . Strategic Management Journal, 1997. BADM545, Fall 3012; Prepared by: Hyunsun Kim. Motivation. Fundamental Question in Strategy. How do firms achieve and sustain competitive advantage? . 15. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Identify three methods that firms use to set their prices.. 1. . Chapter 3. . The External Environment:. Opportunities, Threats, . Industry . Competition, . and . Competitor Analysis. . PART . II. STRATEGIC . ANALYSIS. The Strategic Management Process. External Environments. Understand and be able to clearly articulate what the Internet is, its principal characteristics, and the principal services it makes available to users.. Broaden your definition of the Internet from a network of computer networks to an information grid connecting a staggering range of devices, both wired and wireless.. 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. . The Benefits of Reading Books BEC 30325. Managerial Economics. 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. (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...