How Will a Firms Pricing Strategy Depend on the Structure...

How will a firm’s pricing strategy depend on the structure of the market? A pricing strategy is important to any firm in realising its corporate objectives, whether that be its sales revenue, market share or indeed profit, and thus there is much preoccupation within a business about its pricing strategy. Ultimately, this will be guided by many factors; not least the market power it has to set the price of its products and the nature of the demand curve it faces. This essay will attempt to outline how a firm’s pricing strategy is influenced by the characteristics of the market in which it operates, looking at various market structures, including perfect competition, monopoly and oligopoly. One particular market structure worthy of†¦show more content†¦In addition to this, the markets themselves to be distinct from each other so as to prevent consumers from the lower-priced market reselling the product in the high-priced market. Typically, rail operators have charged cheaper off-peak fares to the elderly and students, who have lower disposable incomes and are more price sensitive than other user groups, in order to stimulate demand from sectors that would not otherwise use it. Figure 2: P P MC MC MR D MR D Q Q Alternatively, maybe a firm operates in a market where it has a large share but competes against small producers possessing a small market share. In effect, the dominant firm has to split the market demand with these small firms, each producing an identical product to the dominant firm and act as perfect competitors, taking the market price as given by the dominant firm and choosing a level of outputShow MoreRelatedStructuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies1258 Words   |  6 PagesSuccessful diagnosis and prescription depend heavily on thoughtful creativity and careful judgment. Three basic stages in that process: 1. Description : the ability to describe a firms financial policies is an essential foundation of diagnosis and prescription 2. Diagnosis : benchmark perspectives, then one compares the idealized and actual financial structures, looking for opportunities for improvement 3. Prescription : action recommendations should spring from the insights gained in descriptionRead MoreInternal Analysis of Texas Instruments1743 Words   |  7 Pages1. Structure and strategy TI has a decentralized structure, which comprises the company’s BOD and executive officers. The BOD commits effective and responsible corporate governance. The board deliberates its governance practices annually to ensure they make sense for the company in todays business environment (The Economist, 2009). The BOD nominates the executive officers of the firm. They comprise the chief financial officer and chief executive officer as well as the leaders of the firm’s principalRead MoreAs An Entrepreneur Who Has Formed A New Small Business1003 Words   |  5 Pagesa marketing strategy. A marketing strategy identifies the planned marketing programs, all the marketing activities that a business will use to achieve its marketing goals, and when those activities will occur (Ebert and Griffin 349). A marketing strategy is all about planning the marketing mix, which includes product, price, place, and promotion. But, first selecting and analyzing a target market for the marketin g mix and product is best for satisfying the target market and the firm’s marketing effortsRead MoreBusiness Analysis : Woolworths Ltd1795 Words   |  8 Pagesalso contains two market change assumption which shows the changes in scenario when the market conditions are changed. Likewise, through real time data and statistics we have shown the firms market structure and how the competitors have been affecting its pricing policy and its profit. The main objectives of this research are as follow: ïÆ'Ëœ To have a clear concept regarding the market structure. ïÆ'Ëœ To know about how competitor in a market affects the pricing policies ïÆ'Ëœ To know about how certain changeRead MoreA Company s Pricing Strategy1315 Words   |  6 PagesA company’s pricing strategy can offer a low price to stimulate demand and be able to gain market share as it focuses on specific economies in administration, production and marketing, striving to be as lean as it can without diminishing the overall level of quality it chooses to produce and be known for in the market (Heiman, 2010). One of the many difficult decisions a company has is to have a detail understanding of planning the costs that are involved in producing a product, delivery, serviceRead MoreWhy Do Firms Differ? What Determines The International Success Or Failure Of Firms?1123 Words   |  5 PagesFor a business to enter a foreign market, it must research carefully what will be the determinant factors for its success. The ‘strategy tripod’ framework is a tool used in business strategy that can help managers make better, more informed decisions. Th e strategy tripod consists of three different philosophies that provides us with the answers to the 3 questions a firm must take into account for optimal performance, ‘industry-based view’, ‘resource-based view’ and ‘institution-based view’, and theyRead MoreEconomic Analysis of an Oligopoly Market Structure1715 Words   |  7 Pagessmall retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of a duopoly. It is evident that Woolworths and Coles engage in predatory pricing in an attempt to eliminateRead MoreBusiness Concept Innovation in Apple1555 Words   |  7 Pagesinnovation: #61607; The first is innovation regarding the firms historic strategy (change own strategy) #61607; The second is innovation with respect to the firms industry and competitors (proactively reinvent the industry) Succeeding at both kind of innovation is not easy. Few companies, herein Apple, are skilful enough to do both. Hamel states that a business concept comprises four major components: customer interface, core strategy, strategic resources, , and value network. Between theRead MoreMarket Strategy Case Study: Katrinas Candies1665 Words   |  7 Pagessignificant degree of interdependence among rival firms in the candy producing market. Please respond to the following questions. a.) What market structures will Katrina’s Candies operate if the above condition prevails?  I think Katrinas Candies would be successful operating in an Oligopolistic Structure. Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry. The market can be dominated by as few as two firms or as many as twenty, and stillRead MoreSupply Chain Management : Supply Chains1476 Words   |  6 Pagesuse a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply

The Romans Values were Honesty, Fairness, and to Uphold a...

England’s former Prime Minister Winston Churchill once said â€Å"We shall defend our island, whatever the cost may be, we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender.† This quote impeccably represents the struggle of the Trojans on the battlefield and it also provided a test of morality and loyalty. During the Trojan War, the Trojan themselves were faced with many clashes of ethical values, such as their need to have a fair and just election versus them making a quick and effective decision, indeed this was tested when the Trojan Horse was left in front of their gates. The Romans had Clear views on their values, and their main three were honesty and fairness, to uphold honor on the battlefield, and to respect duty and divinity. One of the most important factors in Roman culture is to be honest and fair. In the Aeneid a random Trojan speaks out during the decision of the Trojan horse â€Å"It should be hauled inside the walls,† (Virgil, 536) then another responds â€Å"Into the sea with it,† (Virgil, 536). The Trojans were clearly trying to achieve a fair and balanced vote. The fact that they were presenting it to the people and not deciding for themselves represented how they felt obligated to share this, and have a fair and balanced vote. In comparison to other roman values such as their respect for duty and divinity, there are more differences thenShow MoreRelatedContractual Duty of Good Faith9025 Words   |  37 PagesEurope and the United States, Australia does not demand an explicit legal prerequisite of good faith to form a contract.[1] Decisions in different jurisdictions have however considered the validity of the values identified in the doctrine of good faith within contract law, su ch as loyalty, honesty and cooperation. Good faith is valuable because it provides confidence in the formation of contracts between two parties. However there are conflicting views and criticisms of the doctrine of good faith.Read MoreSchool Leadership Roles And Responsibilities10143 Words   |  41 Pagesincredible obstacles across America. One of the biggest obstacles educators face is the decline in moral values and character in today’s young people. The decline in moral character and values has created a student body that may be problematic, undisciplined, promiscuous, and unmotivated. Successful and effective educational leadership is directly correlated to the character development and understood value systems of a school culture and learning environment. This chapter will be broken into two majorRead MoreBusi 561 Legal Issues in Business7036 Words   |  29 Pagesthe business became incorporated. RAPIDS is geared to providing an atmosphere where one can enjoy the finest in cheesecake, quiches, and wines. The creators and owners of RAPIDS started the restaurant because of the high demand for cheesecakes that were sold. After many years of successfully selling the cheesecake, the owners expanded the menu to quiches and wine. There is no further plan to expand the menu as the owners unanimously agree that those who enjoy specialized items at a quality tasteRead MoreEffects of Corruption in the Phil.14311 Words   |  58 Pagescorruption and its cause. To introduce our topic, we first defined what corruption is. We included a definition taken from the website of Philippine Anti-Graft Commission, the government agency tasked to weed out corruption on the government. There were also various definitions of corruption on the first part of our report. We also included the definition of political corruption and the different causes of corruption. These topics are further discussed on the first part. The second part indicatedRead MoreUt Unum Sint25504 Words   |  103 Pagestranscended and overcome in the total gift of self for the sake of the Gospel. lt;Christ calls all his disciples to unitygt;. My earnest desire is to renew this call today, to propose it once more with determination, repeating what I said at the Roman Colosseum on Good Friday 1994, at the end of the meditation on the lt;Via Crucesgt; prepared by my Venerable Brother Bartholomew, the Ecumenical Patriarch of Constantinople. There I stated that believers in Christ, united in following in the footstepsRead MoreLibrary Management204752 Words   |  820 Pages . . . . . . . . 95 Planning—The Outcome . . . . . . . . . . . . . . . . . . . . . . . . 96 Environment—The Assessment . . . . . . . . . . . . . . . . . . . 99 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Values and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Goals, Themes, and Directions . . . . . . . . . . . . . . . . . . 110 Objectives, Initiatives

Australian Tariffs Free Essays

Should Australia reintroduce tarffs for the car industry? Australia’s automotive Industry Is a significant contributor and major employer to the national economy. But the economy Is In crlsls. The greatest problem for the automotive industry is the mindset of the cabinets. We will write a custom essay sample on Australian Tariffs or any similar topic only for you Order Now Cabinets became downright apoplectic and argue that tax payers should not support a failing industry, and they vehemently combat the automotive industry policy as a matter of principle. The truth is, Australia cannot afford losing its car industry. Several academic investigations have been conducted about how this industry contributes to national economy, and he answer couldnt be clearer: It would cost Australia more losing Its automotive Industry rather than supporting It so It can grow strong again. Instead of being a dead weight to Australian economy, the automotive industry is a great contributor to it. The Abbot cabinet shouldn’t burden this weakened industry with tariffs that will ultimately lead it to its doom; instead, it should invest more in it, understanding its real value and accepting that it hasnt received enough attention. The government focuses more on primary production, like cattle, mining or grains; little Is left for ransforming Industries Ilke the automotive one. Australia should Improve what It has to offer to Investors, since It’s facing a hard competition from other countries. If the automotive industry were to collapse, it’s clear that other industries would follow it as well. Can you give examples of current tarffs, subsidies or quotas applied by the Australian Government? Do you agree with the Imposition of these tarffs, subsidies and quotas? Australia applies several tariffs on a wide variety of trading goods. For example: Instruments, weapons and manufactured articles have a 1% tariff; dairy roduce, natural honey, birds’ eggs and other edible products of animal origin that aren’t specified elsewhere (in the tariff establishment table) have a 0. 17% tariff; glass and glassware have a 2. 8125% tariff. Still, most Australia’s customs and tariffs are lower than the global average. Regarding subsidies, the Australian government applies rates on several ambits, like home care, oxygen and enteral feeding or residential respite – and this Is only about healthcare. To be honest, Australia has a balanced taxing system, with rates that are internationally lower than other countries’ ates; besides, there exists a real need for a tax system for the government to have enough resources to ensure a decent lifestyle for its citizens and to provide them with the basic human needs. Leaving aside rates like those meant to regulate industries like the automotive one, it seems that Australia has a fair economic system, not meant for crippling the citizen’s economy, but rather to ensure that all the people’s resources paid In the form In taxes contribute to the general wellbeing. Who do you think are the winners / losers from such protectionist measures? Ultimately, the citizens are the most benefited or prejudiced by these taxes and subsidies. As it has been said before, Australia’s rates and tariffs are significantly lower wnen compared to tnose tnat otner countrles apply; ana tne Income tnat results from these said payments should be applied on new infrastructure, on attending the people’s needs, and on ensuring that unforeseen disasters will be properly faced and answered. This is the ideal system of taxing and applying tariffs: for the countrys money to serve the countrys needs. Still, applying additional taxes to ndustries or basic services is often unfair, especially when those new rates are derived from political affairs; taking the example of the automotive industry, it seems more of a political movement than an economy issue. Thus, applying this kind of taxes only results in weakening the overall economy, which will result in affecting the citizens in general. Nothing good can come from crippling the economic system of a country by attacking the principal sectors that contribute to it; it can be said that Australia is attacking itself when it aims to weigh new taxes on an industry that should be saved instead of being combatted. How to cite Australian Tariffs, Papers