Types Of Strategies For Foreign Locations Essay

Types Of Strategies For Foreign Locations Essay
There are two types of strategies for foreign locations, a centralized location from which a facility
can serve the world market and a decentralized location where facilities are set up in various
regional or national locations close to major markets. A centralized location is chosen when there is
a substantial difference among various countries in manufacturing costs due to each country's costs,
political economy, and culture. It's preferred when trade barriers are low, exchange rates are
expected to remain stable, the product's value–to–weight ratio is high, and the product serves
universal needs. If the production technology used by the firm has high fixed costs and high
minimum efficient scale relative to global demand they can benefit from a centralized location.
Centralizing is also favored when externalities arise from the concentration of like enterprises that
favor certain locations. Conversely, decentralization is preferred when trade barriers are high,
location externalities aren't important, exchange rates are volatile, the product's value–to–weight
ratio is low, and the product does not serve universal needs. If production technology has low fixed
costs, low minimum efficient scale and flexible manufacturing technology is not available,
decentralizing is favored. Decentralization is also chosen if manufacturing costs in various countries
are not substantially impacted by differences in factor costs, political economy, and culture. There
are
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Strategic Pricing Decisions Within Companies
Strategic pricing decisions within companies
Introduction
Drury (2012) defines strategies as: "courses of action designed to ensure that the objectives are
achieved". This definition alone encompasses the importance of developing certain strategy in the
early stages of production in a company; without strategy there is no clear path of how to achieve
targets and most likely failure would follow. In this paper different strategic decisions and processes
of pricing will be discussed. The author starts with exploring the economic model of pricing with
evaluating its strengths and weaknesses. Further on, author looks at pricing from management
accounting perspective and illustrates different models of pricing encompassed by Drury. ... Show
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The pricing model suggests that at the point where marginal revenue equals marginal costs
(MR=MC) the goal is achieved and owner's profits are maximised (Begg et al. 2011). By further
investigating the model (see Figure 1) it is clear the firm wants to produce as much as possible to
spread the fixed costs between produced units and yield a profit. Marginal revenue has to be equal
with marginal costs because if the MC>MR the cost of every extra unit produced will be higher than
what can be earned for it. Logically the price is set at the quantity demanded, but bearing in mind
the point where MR=MC. And finally, the firm's profit would be the difference between average
costs and the actual price; TR–TC=profit. Figure 1 Economic Model of Pricing
1.2 Disadvantages
Although this model is good for understanding the big picture of what companies are trying to
achieve and serves as the base of other economic theories, it has disadvantages. The model involves
a lot of assumptions and is ignoring certain factors. It looks at the firm in short–run instead of
showing how to add value in order to survive in the long–run; it assumes that every consumer acts in
a reasonable manner which sometimes is far from the real world. Moreover, competition is left out
because the model is developed as if the firm has a monopoly in the market, thus operating in a
perfect competition. Additionally the demand is subjective– very hard to actually measure; also
companies can manipulate

Basic Types Of Price Discrimination
Price discrimination is defined as charging customers a different price for the same product. One
major factor of price discrimination is elasticity of demand. Elasticity of demand measures the
percentage of change in quantity to percentage of change in price. If the percent of change is greater
than one, it is elastic. On the other hand, if the percentage of change is less than one, it is inelastic.
For customers who are not price sensitive, or the demand is elastic, when using price discrimination,
the price would rise. The price would be lower for customers who respond more to changes in price,
or the demand is elastic. Whenever price discrimination is possible, it can be highly profitable for a
business.
Further, there are three different types of price discrimination. First–degree price discrimination,
otherwise known as perfect price discrimination, is when a firm charges every customer exactly how
much they are willing to pay for that good and charges a different price for every unit consumed.
Some examples include car sales and roadside sellers of fruit and produce. Next, second–degree
price discrimination is when firms discriminate though volume discounts. This is when a firm
charges a different price for different qualities and allows buyers to purchase a higher inventory at a
reduced price. An example of this would be quantity discounts for bulk purchases. While benefiting
the high–inventory buyers, it can hurt the low–inventory buyer who is forced to pay a

Analysis of Market Structures
An Analysis of Market Structures and Their Related Pricing Strategies
Christa Jones
American Public University Systems
Abstract
Market structures influence a firm's behavior and profit opportunity and are therefore critical to
understanding how a market functions. The conditions that distinguish each market structure define
the level of competition observed within the market which in turn determines the profit level that
can be made. Because pricing strategies are intended to maximize a firm's profit, understanding
market competition is necessary when deciding an appropriate pricing strategy approach. The third
section of this paper gives the pricing strategy for a real–world firm for each market structure.
An Analysis of ... Show more content on Helpwriting.net ...
This section will provide a detailed analysis of the four market structures. Each analysis will
describe the characteristics that are found within a market structure and describe how these
characteristics influence a firm's behavior and profit opportunity. Perfect Competition
A perfectly competitive market is one where competition between firms is intense; the market is
considered concentrated. The characteristics of a perfectly competitive market include having a
large number of firms in the market, homogeneous products, no entry or exit barriers, no non–price
competition or external costs or benefits, perfect knowledge, and zero control over the market price
or conditions. These characteristics create a condition in which the firms in a market act as price
takers; in other words, no single firm has any role in setting the market price and therefore must take
their prices from the industry.
Price taking is the primary condition of a perfectly competitive market. The two main characteristics
necessary for price taking include: having a large enough number of buyers and sellers in the market
so that each is only able to contribute a negligible amount to the total market supply and, secondly,
that firms produce homogenous products that are perfect substitutes for each other. In order for a
product to be considered a perfect substitute for another, each product must be standardized and
undifferentiated

Challenges Related to Marketing and Branding in the...
Challenges related to marketing and branding in the Chinese beer industry:
Source: Loizos Heracleous (2001)When Local Beat Global: The Chinese Beer Industry. Business
Strategy Review, 2001, Volume 12 Issue 3, pp 37–45. Available at:
http://onlinelibrary.wiley.com/doi/10.1111/1467–8616.00182/pdf.
In spite of the fact that the level of taxation on the beer retail price in China was one of the lowest in
the world at 19% (as compared with South Korea at 53.5%, Australia at 52.8% or the UK at 44.6%,
for example), beer producers in China found it hard to make a profit, generally operating at capacity
utilization levels of just
50–65%. The problems faced by foreign entrants can be summarized under four heads:
_ The high ... Show more content on Helpwriting.net ...
* Most of the beer sold through retail (''take–home'' or ''off–premise'') outlets is standard beer.
People bring reusable glass bottles and fill them up. Most of the international brands are only
available through ''on–premise'' channels like hotels, restaurants, bars, and karaoke bars. On–
premise prices are considerably higher than off–premise retail, and indeed considerably higher than
many Chinese consumers can afford. Among status–conscious buyers purchasing beer in hotels,
bars, discotheques, and restaurants, however, demand is relatively price inelastic. Some customers
are prepared to pay very high prices even by Western standards for the right brand, as a sign of
status.
Most foreign brewers had imported their brands to China before producing them domestically.
Multinational brewers had spent large sums on advertising, especially in the bigger hotels and
restaurants where prices were already high. In order to secure access to higher–paying customers
who were frequenting these restaurants and hotels, larger beer companies paid an extra concession
fee to sell on these premises, thus furthering raising the final price of the beer. As a result, many
local Chinese beers were being pushed out with foreign beers often sold at twice the price of local
ones. Overseas brewers then began to import brands rather than products by finding cooperative
partners in China: the world's top 10 brewers had all entered the market in this way.

Pricing Strategy ...
There are many ways in which the price of a product can be determined. The following are the
foremost strategies that businesses are likely to use.
Contents
1 Competition–based pricing
2 Cost–plus pricing
3 Creaming or skimming
4 Limit pricing
5 Loss leader
6 Market–oriented pricing
7 Penetration pricing
8 Price discrimination
9 Premium pricing
10 Predatory pricing
11 Contribution margin–based pricing
12 Psychological pricing
13 Dynamic pricing
14 Price leadership
15 Target pricing
16 Absorption pricing
17 Marginal–cost pricing
18 References
[edit] Competition–based pricing
Setting the price based upon prices of the similar competitor products.
Competitive pricing is based on three types of ... Show more content on Helpwriting.net ...
The idea of selling at a loss may appear to be in the public interest and therefore not often
challenged. Only when the leader pushes up prices, it then becomes suspicious. Loss leadership can
be similar to predatory pricing or cross subsidisation; both seen as anticompetitive practices.
[edit] Market–oriented pricing
Setting a price based upon analysis and research compiled from the targeted market. Also with the
cost price.

[edit] Penetration pricing
Main article: penetration pricing
The price is deliberately set at low level to gain customer 's interest and establishing a foot–hold in
the market.[2]
[edit] Price discrimination
Main article: price discrimination
Setting a different price for the same product in different segments to the market. For example, this
can be for different ages or for different opening times, such as cinema tickets. Market orientated
pricing is also a very simple form of pricing used by very new businesses. What it involves is,
setting the price of your product/service according to research conducted on your target market.
[edit] Premium pricing
Main article: Premium pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order
to encourage favorable perceptions among buyers, based solely on the price. The practice is
intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive
items enjoy

The Pros And Cons Of Interest And Budgeting
According to a report posted at (–– removed HTML ––) opploans.com (–– removed HTML ––) , the
wisest strategy for people struggling with monetary problems is to reduce their current debt load,
improve their credit ratings, earn more money and reduce routine expenses. Learning more about
loans, interest and budgeting can be a big advantage when dealing with unsustainable debts,
financial obligations and personal living expenses. The article mentions these financial conditions
that can severely test your ability to be financially stable:
(–– removed HTML ––) (–– removed HTML ––) 30 percent of U.S. consumers have a bad credit
rating. (–– removed HTML ––) (–– removed HTML ––) About 46 percent of Americans feel
"underemployed. (–– removed ... Show more content on Helpwriting.net ...
Warren commented before the House Subcommittee as a special advisor to the Secretary of the
Treasury, "Consumers want to know the costs up–front and don't want to be blindsided by hidden
fees, interest rate changes, or payment shocks."
Transparent lending makes it possible to budget your repayment strategy more strategically by
spreading the costs of repaying a small–dollar loan. Given the multiple sources for these loans––
which includes banks, payday loan companies, credit unions, community–based lenders and
emerging alternative lenders––consumers can find a greater range of loan amounts, interest rates and
financing periods that better match their incomes, debt–to–income ratios and budgets.
(–– removed HTML ––) (–– removed HTML ––) (–– removed HTML ––) Installment Loans Online:
How to Research Lenders and Loan Products (–– removed HTML ––)
Finding installment loans online is as easy as finding payday lenders because many payday loan
companies now offer these alternative loan products. Traditional lenders also offer installment loans,
so it's important to compare interest rates, repayment periods and other loan fees before signing a
contract and finalizing any loan. Your first efforts to research online loan options should include
finding out which trade organizations prospected lenders belong to, whether there have been many
unresolved consumer complaints
The national organization of payday–type installment

Compare And Contrast Amazon Pricing Strategy
Due to multiple external and internal factors, pricing strategy has become one of the main focuses
for a ranging scale of businesses. For some small companies, cost leadership from low quality
materials and less overheads allow low prices, resulting in competitiveness and survival of their
business, in comparison to larger businesses who are able to charge more as they may have better
quality products and large finances to allow above the line promotion. Furthermore, their approaches
to the market place will differ; businesses who aim to charge less, will market their products at
people who can demographically afford the products and understand their goods/service are price
and income elastic. In a dissimilar fashion, organisations who look to charge higher, approach
marketplaces with strong brands for their loyal customers with the belief the high prices are
acceptable. Regarding Jeff Bezos' quote, the statement ended with "we will be the second". The
Amazon billionaire acknowledges the importance of meeting pricing strategy for consumer needs
and desires. Thus, with a clear focus of keeping prices low, Amazon select suitable operations such
as being an e–tailer and marketing techniques to stay successful. This essay will critically analyse
the comparisons between the different scales of businesses and to which the way they strategically
operate, approach the market and the factors that enforce this.
Firstly, one of the primary reasons prices in businesses alternate would

Bill
74–231: Quiz #6: Attempt #95686 From user sussii. Score: 8 ∕ 10 (80%) Started 2012–02–27 10:08
am; submitted 2012–02–27 10:17 am. 1. The two types of shopping products are: * generic and
family * consumer and business * exclusive and intensive incorrect * heterogeneous and
homogeneous * unsought and convenience 2. Ocean Spray manufactures Cranberry Juice Cocktails.
The addition of Light Cranberry Juice Cocktails is a way that Ocean Spray can expand its product: *
line depth correct * mix width * mix depth * line width * breadth mix 3. A regional utility company
needs to change consumers' perceptions of its current service as being harmful to the environment.
... Show more content on Helpwriting.net ...
Score: 8 ∕ 10 (80%) Started 2012–03–12 1:38 pm; submitted 2012–03–12 1:48 pm. 1. _____ occurs
when products are distributed through unauthorized marketing channels * Reverse channeling *
Gray marketing correct * Black marketing * Countertrading * Channel malfeasance 2. _____
distribution is achieved by screening dealers to eliminate all but a few in any single geographic area.
Shopping goods and some specialty products that consumers are willing to search for are sold this
way. * Dual * Selective * Intensive * Exclusive incorrect * Controlled 3. _____ is a trend in
physical distribution. * Fewer direct channels * Direct–sourcing incorrect * Contract logistics * The
downsizing of distribution managers * An over–dependence on computer technology 4. What kind
of inputs are used in distribution resource planning? * all of these choices correct * sales forecasts *
lead times * mode of transportation to be used * outstanding orders 5. _____ provides time utility to
buyers and sellers and aids manufacturers in managing supply and demand. * Distribution *
Containerization * Storage correct * Temporal channelization * Direct–sourcing 6. Which of the
following

Lego Features Of Lego Blocks
Contents
Current Product 1
Current Price 1
Current Place 3
Current Promotion 4
New Direction 6
References 8
Current Product
LEGO blocks can be quite expensive for different sets, for example, a Star Wars Death Star set is
$499 (walmart.ca, n.d.), but LEGO also has sets for beginners that can be very inexpensive. LEGO
would be categorized shopping product, as they have the potential where customers are willing to
invest time and effort, and there are many other brands of toys to be considered.
In North America the Death Star Set has reached its maturity stage as the brand has begun shipping
this major item to retailers, such as Toys 'R' Us. Even as the item has hit this stage it has continually
hit high reviews on both the LEGO website and the retailer's websites. For this specific item LEGO
has continued to use a cobranding strategy for every Star Wars product that has been introduced to
the product line. LEGO has mainly used this strategy for most of their products; for example LEGO
has many cobrands such as Indiana Jones, Marvel, DC Comics, Minecraft, as well as many other big
brands that are very popular.
LEGO has continued this same strategy as it brings many fans from different brands to be able to
build and play with sets that are replicas of the movies actual vehicles and various other parts from
the movies or the games. To put into perspective, the LEGO Star Wars product grossed a net profit
of 648.7 million euros in 2012.
Current Price
LEGO is a

What Is Price, And Why Is It Important For A Firm?
Chapter 10
1. What is price, and why is it important to a firm? What is digital currency such as the bitcoin?
– Price is the assignment of value of a product or service. Not only paid with currency, but in
multiple manners these could consist of digital money such as the "bitcoin". The bit coin has merged
in to financial market and many firms are starting to use this type of virtual currency. These
currencies cannot be controlled by one party (government) that is why it has been such a
controversial issue.
2. Describe and give examples of some of the following types of pricing objectives: profit, market
share, competitive effect, customer satisfaction, and image enhancements.
– In order for a firm to maximize their customer ... Show more content on Helpwriting.net ...
3. Explain how the demand curves for normal products and for prestige products differ, what are
demand shifts and why are they important to marketers? How do firms go about estimating demand?
How can marketers estimate the elasticity of demand?
– Normal products are categorized as products whose value is lower than prestigious products, they
both assume a role in the market as they are targeted to different market segments. Demand curves
differ as both products may be perceived differently, typically normal products are perceived as
lower quality contrary to prestigious products whose customers perceive them as higher quality
products. Ultimately, they differ in the perception of the customer as each product is categorized
according to their price, and higher priced products may be perceived as better. An example could be
represented by two different vehicle manufacturers; Honda, and BMW, Honda is a low priced
vehicle known for reliability fuel efficiency, etc.... BMW are known for their luxury, and price. Here
their demand may differ as they both have different target markets. Perhaps if Honda decided to
raise their price, they would more than likely lose profit, but if BMW was to lower their price, their
demand would potentially increase. These changes are known as demand shifts here a firm identifies
the traits of each shift, and can identify the relationship in demand. Moreover, marketers can
estimate their product demand. This is done by one;

Example Of Predatory Pricing Strategies
Predatory pricing: It's actual effectiveness
Predatory pricing is an anticompetitive strategy that indents to drive competitors out of the market
and gain monopolistic profits. The predatory firm first lowers its price, to an extent which the
revenue of the product does not cover the costs. Their competitors must then lower their prices
below their average cost, thereby losing money as their products are sold. If they do not cut their
prices, they will lose customers due to higher prices; if they do cut their prices, they will eventually
go bankrupt. (DiLorenzo, 1992)
If the predatory firm manages to survive longer, which in most cases they will, they will eventually
gain a monopolistic position. The modern antitrust law intends to prevent damage to consumer
welfare and reduce the incentive of achieving excellence by outlawing anticompetitive behaviors.
However, presently some people still believe that ... Show more content on Helpwriting.net ...
Koller, the author of "The Myth of Predatory Pricing," after judging 23 cases that contains enough
information, found out that actual predation was attempted in seven cases (30 percent) and
succeeded in only four (17 percent). However other researchers did not come up with similar results.
For example, Zerbe and Cooper examining the same cases beginning in 1940 and updated to 1982
concluded that predatory pricing was present in 27 out of 40 studied cases. (Bolton, P. and Joseph,
B. and Riordan, M., 1999). These studies are only based on court cases and the settlements, which
are more likely to be strong cases, have not been accounted in the study. So, the actual number of
cases of a business conducting predatory pricing will be even more. Even Koller, who is against the
legitimacy of predatory pricing, have to admit that 17% of predatory pricing actually worked.
Considering the more recent study, more advanced techniques, like econometric measures, have
been

My Coursework
Assignment 2 – Business Studies – enter the dragon's den
You are going to develop a business idea and write a business plan. Below is a list of possible
businesses you might be interested in starting: Bed and breakfast business plan Cafe business plan
Child care business plan Consultant business plan Day care business plan Day spa business plan
fitness centre business plan Hair Salon business plan Health club business plan Internet cafe
business plan Landscape gardening business plan Retail business plan Sandwich shop business plan
A. INTRODUCTION
What is a Business Plan? It is important that a Plan is produced to ensure that the proposed ... Show
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The market for my product consists of a number of segments. The main markets include business
travelers, tourists and commercial banks. The money change will primarily target families on
holiday and business travelers. The main factors affecting the demand for money exchange involve,
the exchange rate, the season (people travel more in the summer) the economy.
The main competition money exchange businesses face is other exchanges in other areas such as
post office, banks and electronic sources such as cash tills and credit cards.
Consider some theory:
Asset Led vs. Market Led
Asset Led marketing is based on strengths of firm
Market Led is based on what customers want
Niche Market –
USP – unique selling point; what will it be for your firm – a small part of the market; for example
Travellers who want fixed amounts of money ready after they have emailed ahead and left their
details.
Market Plan (the 4ps)
Product
Give details of the Market Research carried out i.e. What is the market? How big is it? What factors
influence demands? – price – quality – season What is the competition? Who will be your
customers?
Price
Pricing Strategy
Competitive – charging the same as your competitors
Price skimming – high price to cover research costs before others into market.
Penetration pricing – low price to capture market share

Cost–plus pricing – cost of product plus markup
Predatory

Oligopoly: Pricing and Game Theory
Key characteristics The main characteristics of firms operating in a market with few close rivals
include: Interdependence Firms that are interdependent cannot act independently of each other. A
firm operating in a market with just a few competitors must take the potential reaction of its closest
rivals into account when making its own decisions. For example, if a petrol retailer like Texaco
wishes to increase its market share by reducing price, it must take into account the possibility that
close rivals, such as Shell and BP, may reduce their price in retaliation. An understanding of game
theory and the Prisoner's Dilemma helps appreciate the concept of interdependence. Strategy
Strategy is extremely important to firms that are ... Show more content on Helpwriting.net ...
Advertising Advertising is another sunk cost – the more that is spent by incumbent firms the greater
the deterrent to new entrants. A strong brand A strong brand creates loyalty, 'locks in' existing
customers, and deters entry. Loyalty schemes Schemes such as Tesco's Club Card, help oligopolists
retain customer loyalty and deter entrants who need to gain market share. Exclusive contracts,
patents and licences These make entry difficult as they favour existing firms who have won the
contracts or own the licenses. For example, contracts between suppliers and retailers can exclude
other retailers from entering the market. Vertical integration Vertical integration can 'tie up' the
supply chain and make life tough for potential entrants, such as an electronics manufacturer like
Sony having its own retail outlets (Sony Centres), and a brewer like Heineken owning its own chain
of UK pubs, which it acquired from the brewers Scottish and Newcastle in 2008. Collusive
oligopolies Another key feature of oligopolistic markets is that firms may attempt to collude, rather
than compete. If colluding, participants act like a monopoly and can enjoy the benefits of higher
profits over the long term. Types of collusion Overt Overt collusion occurs when there is no attempt
to hide agreements, such as the when firms form trade associations like the Association of Petrol
Retailers. Covert Covert collusion occurs when firms

A Brief Note On The Uk Market Industry
Oligopoly in UK supermarket industry
The main factor in an oligopolistic market is that there are only a few dominant competitors in the
marketplace. According to Anderton (2008: 322), 'An oligopolistic market is one where a small
number of interdependent firms compete with each other '. For this assignment I've chosen to focus
on the UK super market industry as there is clear evidence that the UK supermarket sector is
increasingly dominated by four main firms. These are Tesco's, Sainsbury's Asda and Morrison 's.
Firstly I will look into the four main firms. Lets start with Tesco's the front leader in market shares
for the UK supermarket industry. Tesco's is a multinational grocery and general merchandise retailer
headquartered in ... Show more content on Helpwriting.net ...
An illustrating example of the big chains competing with each other is 'Brand Match'. This idea,
developed by Sainsbury's in an effort to compete with Asda's low and very competitive prices, was
replicated in all the other major supermarkets after it was noticed and obvious that this was a
successful way to attract customers. Morrison's, taking the concept substantially further, launched a
'Match and More' card, offering to credit the difference in points if you would have paid less for
your shopping at Aldi, Lidl, Tesco, Sainsbury 's or Asda.
A solution, universally favored by each, to distinguish themselves from one another and thus attempt
to assert a level of dominance within the marketplace, has been the development of their own
premium range of food. A brand within a brand. This is seen, with obvious success, in Sainsbury's
'Taste the Difference'. The 'Taste the Difference' range is competing very well with even the higher
end companies like Waitrose and Marks & Spencer's. To go one step further each supermarket also
has a more economic range, marketed towards the thrifty shopper. Once again using Sainsbury's as
an example we can see that the value brand within a brand would be the 'Sainsbury's Basics' which
successfully competes with discount chains such as Aldi and Lidl. Many of the products in both the
higher end and more value targeted end of each range from all

Essay on Segmentation/Target Market Strategy
Segmentation/Target Market Strategy
Market segmentation is the division of a market into different groups of customers with distinctly
similar needs and products or service requirements (Croft, 1994). Its major purpose is to pull scarce
resources and ensure that the elements of the marketing mix, price, distribution trends, products and
promotion are premeditated to satisfy the particular needs of the different customer groups. City
Grill's main approaches to market segmentation, could include using the breakdown method where
they can view the market as to consist of consumers who are in essence the same, having similar
tastes, and so forth. Their duty could only be to identify groups which share particular differences.
Alternatively they ... Show more content on Helpwriting.net ...
Using the geographic segmentation approach, they have divided the market into two segments rural
and urban, of which they serve the urban. Behavioral segmentation divides the market according to
attitudes, they have located themselves at strategic positions and provided ambience in the restaurant
to satisfy different temperaments of people. In employing psychographic segmentation, they have
divided the market on the basis of lifestyle preferences. In using price segmentation, they have
divided the market in lines of luxury, economy, and value.
After segmenting the market there is a need to narrow down to a specific target, this achieved
through target marketing, which breaks down the clientele into primary, secondary and tertiary
categories (Dibb & Simkin 1996). From the empty seats in the restaurant it could be true that City
Grill employs niche marketing to reach its target group. Niche market in simple terms is selecting a
small group within a large group. By offering steak as their main delicacy they have specialized in a
small group or a niche in the extensive restaurant industry.
Organization Analysis
Service Processes Table 2– service blueprint (emaraldinsight.com 2011)
When City Grill follows the service blueprint above in its service processes, a change will be
observed in their sales as there profits will definitely increase. They need to reduce the amount of
waiting time from the thirty minutes to around ten minutes;

Pricing Strategy and Channel Distribution
The Note Phone Marketing Plan – Pricing Strategy and Channel Distribution
Lisa S Carey
Marketing Management – MKT 500
February 13, 2011
Instructor: Dr. Keith C. Jones
Marketing Plan – Pricing Strategy and Channel Distribution for the Note Phone 1. Determine and
discuss a pricing strategy (Penetration or Skimming). Pricing is an important strategic issue because
it is related to product positioning and furthermore, pricing affects other marketing mix elements
such as product features, channel decisions, as well as promotion. Per Marketing Management,
Chapter 8 in Review, "Pricing strategies don't vary much from low, medium or high". For new
products, the pricing objective often is either to maximize profit margin or to ... Show more content
on Helpwriting.net ...
We have listed a few per US Legal: * Price discrimination which is the practice of charging different
persons different prices for the same goods or services. Price discrimination was made illegal under
the Sherman Antitrust Act. 15 U.S.C. §2, the Clayton Act, 15 U.S.C. §13, and by the Robinson–
Patman Act, 15 U.S.C. §§13–13b, 21a, when engaged in for the purpose of lessening competition,
such as tying the lower prices to the purchase of other goods or services. Now if different prices are
charged to different customers for a good faith reason, such as effort by the seller to meet the
competitor 's price or a change in market conditions, it is not illegal price discrimination, when there
is no intent to harm competitors. * Price fixing is an arrangement in which several competing
businesses make a secret agreement to set prices for their products to prevent real competition. It is a
criminal violation of federal antitrust statutes. Price fixing also includes secret setting of favorable
prices between suppliers and favored manufacturers or distributors to beat the competition. *
Horizontal price fixing, which would involve competitors colluding to set prices, remains illegal. *
Vertical price fixing pertains to arrangements between a manufacturer, distributor, supplier or
retailer. Courts have held that vertical maximum price fixing, like the majority of commercial

Advantages Of Pricing In Marketing
nts
Introduction 1
Price in marketing 1
Pricing strategy–Cross Subsidy 1
Ethical issue in pricing–Predatory Pricing 2
Advantages of predatory pricing 3
Disadvantages of predatory pricing 4
Example in pricing 4
Summary of example 7
Conclusion 7
Reference 7
Introduction Price is all around us. You pay accommodation fee for your hostel, tuition for your
education. You pay transportation fee such as airline, railway, taxi, and bus. And the bank charges
you interest for the money you borrow, the price for parking your car at shopping mall. Your
hairdresser asks charge for cover his service. The "price" of an executive is a salary, the price of a
salesperson may be a commission, and the price of a worker is a wage. Price is the amount of money
... Show more content on Helpwriting.net ...
Most importantly it leaves them with very little reaction time. So in the initial phase not much
competition is faced.
Good will among early customers
Happy at having struck a profitable deal the customers are ready to come back to the manufacturer
in future. This goodwill created also leads to further promotion of the product through "word of
mouth".
Cost efficiency
The emphasis on keeping the price low helps in controlling the cost thereby cost efficiency is
achieved.
Competitors are kept at bay
If a manufacturer adopts penetration pricing and lowers the price of his products or services he may
stop competitors from entering the market. This happens because now the competitors will have to
enter the market at lower than existing prices. This reduces their profit not to mention the risk they
face as new entrants in acquiring market share.
Channel benefit
As this technique creates a quick turnover it keeps its retailers and distributers happy.

Disadvantages of predatory pricing The customer expects the prices to remain low for a long term.
They are not ready for the subsequent rise in the price and when it happens they might switch to a
competitor's product. Thus subsequent price hike leads to loss of market share

Advantages And Disadvantages Of Creaming
Creaming or skimming[edit]
In most skimming, goods are higher priced so that fewer sales are needed to break even. Selling a
product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the
market. Skimming is usually employed to reimburse the cost of investment of the original research
into the product: commonly used in electronic markets when a new range, such as DVD players, are
firstly dismarket at a high price. This strategy is often used to target "early adopters" of a product or
service. Early adopters generally have a relatively lower price–sensitivity – this can be attributed to:
their need for the product outweighing their need to economise; a greater understanding of the
product's value; or simply ... Show more content on Helpwriting.net ...
First–degree price discrimination
– The business charges every consumer exactly how much they are willing to pay for the product.
2. Second–degree price discrimination
– The business uses volume discounts which allows buyers to purchase a higher inventory at a
reduced price. While this benefits the high–inventory buyer, it obviously hurts the low–inventory
buyer who is forced to pay a higher price. This buyer may then be less competitive in the
downstream market.
3. Third–degree price discrimination
– This occurs when firms segment the market into high demand and low demand groups.[16]
Firm need to ensure they are aware of several factors of their business before proceeding with the
strategy of price discrimination. Firms must have control over the changes they make regarding the
price of their product by which they can gain profitability depending on the amount of sales made.
The price can be increased or decreased at any point depending on the fluctuation of the rate of
buyers and consumers. Price discrimination strategy is not feasible for all firms as there are many
consequences that the firms may face due to the action. For example: if a firm sells a product to their
customer for a cheaper price and that customer resells the product demanding a higher price from
another buyer then the chances of the firm failing to make a higher profit is predicted because they
could have sold their product at a higher rate than the re–seller and made further

Research Paper On Bata
A strong position of the firm's brand and relationship, and help to specific the target market of every
products with the customer by using the marketing communication mix.
The first factor identified by the team is the issues related to advertisement. In part of advertisement,
Bata does not have promote much by using advertisement, because Bata was mainly emphasize in
providing sale in their customers. In a marketplace, as a retailer to increase their profit and company
growth within the marketing channel. Here are some way to advertise products by Bata, such as tag–
line, specialized shoe, consumer promotion, and opening new store. About tag–line, which means
Bata designated of the individual product as the key components of advertising ... Show more
content on Helpwriting.net ...
Marginal Cost Pricing is by setting the price will be equal the extra cost of producing an extra unit
of the output. Some firm always set a price that closely with the marginal cost while the period of
poor sales.
Contribution Pricing is the price that set to assure the coverage of the variable costs and contribution
to the fived cost. This strategy is similar with the principle to marginal cost pricing.
Target Pricing is hereby the selling price of a product is calculated to produce a particular rate of
return on investment for a specific volume of production. The method of this strategy is often using
by the public utilities. The pricing strategy that Bata used market skimming price discrimination,
psychological pricing and competition–based pricing. When Bata was introducing a new product, it
will set a high price, and after a period of time, they will decrease the price to encourage consumers
to buy it. Other than that, Bata also will make some poster to advertise their product through the
time of introduce of new product, sales day and annual sales period. So it can attract consumers to
come and buy it. To ensure that there are not so much different price with competitors, Bata was
setting price at low price, middle price and upper price in different category of product. Thus, it can
targeted different income class of customers to purchase their

Managerial Economics
CASE – 1 Dabur India Limited: Growing Big and Global Questions 1. What is the objective of
Dabur? Is it profit maximisation or growth maximisation? Discuss. Answer : The objective is to
"significantly accelerate profitable growth by providing comfort to others". It is growth
maximization because for achieving this objective Dabur aims to: Focus on growing core brands
across categories, reaching out to new geographies, within and outside India, and improve
operational efficiencies by leveraging technology. Be the preferred company to meet the health and
personal grooming needs of target consumers with safe, efficacious, natural solutions by
synthesising deep knowledge of ayurveda and herbs with modern science. ... Show more content on
Helpwriting.net ...
| | | |Answer : The Indian IT industry has been the great success story of India's liberalisation.
Starting with an export of around $100 million and | |5000 employees at the beginning of the 1990s,
it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |
|industry too. It has transformed India, created pride in being Indian and given the much needed
respect to our passport globally. Including | |business in India, the industry has crossed $100 billion
in revenues with over 3.5 million employees, amongst the top 2 industries in India | |today. | |After
such a fantastic run the industry is facing new challenges, raising questions about its future. For us
to understand the current state of | |the industry and its challenges it is important to understand its
various phases of growth so far. | |The industry has gone through two distinct phases and is entering
the third phase of growth. It has succeeded in overcoming many challenges along| |the way and has
created five of the top 10 global leaders in software

Pricing Strategy and Channel Distribution.
Pricing strategy and Channel Distribution.
Strayer University
Author Note Silp Dhanasin, Master of Business Administration, Strayer University Correspondence
concerning this article should be address to Silp Dhanasin, Master of Business Administration,
Strayer University, 500 Redland Ct#100, Owing Mills, MD 21117
Abstract
Gravity Co., Ltd is a start–up game on mobile business, and because the company intends to
establish its market share; it will be utilizing the best pricing strategy and tactics, as well as the most
practical distribution process. The pricing strategy defines what the main focus in pricing the mobile
news games offering of the company is. While the pricing tactics will allow the company to gain
market ... Show more content on Helpwriting.net ...
Predatory pricing is the strategy of pricing the product at a very low price to drive the competitors
out of business.
The Gravity understands that the violation to the laws on pricing will result to legal suits and
complications thus; it intends to follow by the law while it keeps its competitiveness. It is possible
because the company will do its best to lessen its production costs by acquiring the least amount of
third party provider, and by employing the highest quality telephony modules available in the
market, to create maximum amount of messages and game applications for its customers.
In case of prepare a marketing distribution channel analysis identifying the wholesaler, distributor,
and retailer relationships. The company will have the Internet website where the customers can
directly purchase mobile news games of Gravity company through downloading from the company
website and uploading to their mobile devices. The company will also partner with mobile services
providers as its primary channel of distribution; for instance, Apple will include our URL links in
the Internet menu of their cellphones, as an additional game option for their customers. The
company earns when the customer clicks the link and enter the company's gaming interface. The
company will also partner with internet mobile application providers to sell our mobile games in
their site, this should be made under strict contract to avoid

Economic Analysis of an Oligopoly Market Structure
1. Introduction
1a. Article Summary
In this article Michael Baker discusses the livelihood of small 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 eliminate independent retailers
from the market. This article discusses recent efforts made by the Australian government and the
Australian Competition ... Show more content on Helpwriting.net ...
Woolworths and Coles would have agreements with farmers to supply exclusively to them, in
exchange for the firm purchasing all of their quality produce. Woolworths and Coles are also more
likely to be able to purchase products, including fruit and vegetables, for a cheaper price than small,
independent sellers, as they are purchasing in bulk. According to McKenzie (2002) "No major
supplier, no matter how big or powerful they are, can afford to be offside, or out of favour, with
Coles or Woolworths".
Economies of scale give Woolworths and Coles an advantage over smaller retailers because, as a
result of their large scale production, they are able to produce at a lower average cost, allowing them
to sell goods to consumers at a lower price. This competitive pricing eventually forces smaller firms
out of the market, as they are unable to match the predatory pricing, due to a lack of economies of
scale.
Because Woolworths and Coles generally have homogenous products, they rely on a heavy use of
advertising, in order to avoid competitive pricing with each other. Oligopolies tend to avoid
competitive pricing at all costs, as the worst case scenario of this is a price war, which generally
cannot be escaped, resulting in one survivor, who goes on to become the monopolist.
It is evident that Woolworths and Coles are mutually interdependent, whereby each of the firms
pricing strategies relate to, and depend on, each

Google vs. Monopoly
Google vs. Monopoly
Content
Introduction.................................................................................................................................2
Long Journey To Victory
.......................................................................................................................2
Evil Monopoly
...........................................................................................................................................3
Conclusion................................................................................................................................4
References..............................................................................................................................6
Google vs. Monopoly
Introduction When running a large system of goods or services which millions of people follow, it is
obvious there will be ones who will be jealous of such a system and who will try to prevent or break
this system by any means whether it involves cheating or ... Show more content on Helpwriting.net
...
(U.S., 2013)
The resolution disappointed consumer rights groups and Google rivals such as Microsoft, which had
lodged complaints with regulators in the hope of legal action that would split up or at least hobble
the internet's most powerful company. (Timberg, 2001) Evil Monopoly A monopoly is an
aristocratic domination of a specific product or service by one essence. It usually associates with a
control by a business organization. A classic example of a monopoly would be Microsoft. Oligopoly
is a relevant term in which a product or service is managed by a small group of large business
organizations. Generally, economists come to the same agreement that monopoly is in fact
corrupting and damaging. A monopoly weakens the free market moderation which in turn leads to a
crippled economy. This is how the progress for capitalism is supported. The outcomes of oligopolies
can turn out the same way but since there is a small group of large corporations, the competition is
the key to preventing the disadvantages that can easily happen under monopolistic control.
Monopoly opens doors wide for anti–competitive practices.
Price gouging is one of such practices. If there is not

Ryanair's Pricing Strategy Of Ryan Air
Ryanair positioned itself as a low cost airline, which delivered services equivalent to that of British
Airways and Aer Lingus. In terms of service quality, they positioned themselves in the same
category as the aforementioned airlines, but at the same time, charging a relatively low price when
compared to British Airways and Aer Lingus. Their strategy was to deliver first rate/ good quality
customer services and offer meals and amenities comparable to that of British Airways and Aer
Lingus. The second strategy was to charge a single fare ticket of I£98 on it Dublin–London service,
which was very low when compared to British Airways and Aer Lingus's rate of I£208 or I£99 if
booked in advance.
Ryanair used the penetration pricing strategy, ... Show more content on Helpwriting.net ...
This reaction of Ryanair's competitors will be discussed more lately in this paper. Given that Ryanair
is a new airline, chances of survival will be slim if they engage in a price war.
If all is in favor of Ryanair, they will be able to acquire a sizeable portion of its competitor's market
share for that route, as well as acquire new customers from other transport options such as trains and
ferries, by offering a faster commute. To compare the price with competitors and consider this
opportunity for Ryanair's service between Dublin and London, Ryanair should estimate the cost and
the possibility of seats sold by using British Airways revenue and cost in exhibit 4 of the case study.
From the exhibit 4, Ryanair can calculate the possibility of seats sold by finding the ratio of
customers who do not book the seat of British Airways in advance and compare to its own seats
available annually. The British Airways average revenue per passenger equals to I£166.5. Also,
British Airways is selling its ticket at the price of I£208, and I£99 for early advance booking.
Therefore, only around 38.07% of British Airways' customers bought the seat in advance, while the
rest, 61.93%, paid for full amount of I£208. That means the round–trip passengers around 309,633
persons out of a half million paid at the price of I£208. On the other hand, Ryanair would run only
four

Pros And Cons Of Predatory Pricing
There are several interesting topics professor Aggarwal discussed in Econ 140, the two topics I
found most interesting were predatory pricing and vertical integration. Predatory pricing is a method
used by firms to lessen competition by essentially eliminating them out of the market. It is the act of
charging a price below the firm's own marginal cost in order to drive out a rival out of the market.
Once the firm successfully drives the rival out of the market it is free to increase its price and charge
its desired price. Predatory pricing is only optimal when the firm's present value of the future profits
is greater than the loss profits needed to drive out competitors. The predator must have the sufficient
amount of financial resources to participate in such an act, so it can outlast the prey, the competitor.
The two firms therefore compete in a price war which is beneficial to the consumer during the price
war, however when the predator wins it will essentially have a monopoly and drive up prices far
more than usual. Predatory pricing is an illegal act, however it is difficult to prove due to the fact
that it can be portrayed as price competition and not a deliberate act. It is not illegal for a firm to
lower its pricing as it could be seen as a competitive action. The Federal Trade Commission
carefully examines claims of predatory pricing for this reason because it is legitimate business
practice. Strict enforcement of rules against predatory pricing could lead to firms

Predatory Lending in the Housing Industry
The Ethics of Predatory Lending in the Housing Industry
The real estate industry is thriving with approximately sixty–eight percent of all Americans being
homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and
government funded educational opportunities (i.e. the Home Ownership Center of Greater
Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there
are some unethical lending practices that are threatening the housing industry as a whole. Those
involved in the mortgage lending process have some duty to the borrower. They are expected to
perform their specific duties in an ethical manner and have some form of direct or indirect contact
with the ... Show more content on Helpwriting.net ...
credit life insurance being implied as necessary to obtain a loan).
• Failure to report good payment on a borrower 's credit report.
• Falsifying loan documents.
• Making loans to mentally incompetent parties.
• Mailing "live" loan checks to clients that do not request them.
Through the use of false promises and sneaky sales tactics, borrowers are convinced to sign a loan
contract before they have had a chance to review the paperwork. If the borrower is allowed the
chance to go over the fine details of the contract, a significant amount of the borrowers targeted by
predatory lenders haven 't been updated enough to really understand what they are signing. In most
cases, sub–prime borrowers do not hire attorneys to represent them. They either don 't have the cash
flow to do so, or they are not made aware of the opportunity. An example of the predatory lending
practice of high interest rate financing is as follows:
A $100,000 mortgage at 8% and zero points over a 30–year time period yields interest worth
$164,155. Not all loans are available at 8% because not all borrowers have great credit. Now, let 's
say that 8% is the base rate for loans today but rates as high as 12% and zero points will be allowed.
This means that a $100,000 loan over 30years would have a projected interest cost of $270,300. Any
loan with a higher projected yield—including interest, points, loan discount fees, origination fees,
and

Bus 640 Final Paper
Introduction:
Managers within organizations are faced with the challenges daily of making excellent decisions. In
everyday life we are challenged in making sound decision, decision that will last for a life time. Folk
often wonder after making a decision if it was the right choice, will it affect the people around me,
was this a good choice for my family, and will the decision affect them. In order to be an effective
manager you have to possess the skill of outstanding decision making skills. In order for one to be
successful within their personal life they may also need to possess an understanding of effective
decision making. The decision– making process should be one that makes a positive change. Can the
decision making process work ... Show more content on Helpwriting.net ...
The company must factor in that each of their customers has lifetime value, a greater value than a
small gain made on first sales. With competition in their sector, more penetration pricing would be
appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing
strategy must realize lifetime value, (University of Phoenix, 2011).
Acer should avoid high price tactics, or selling off their market share. By doing this, they would
retain only a small percentage of the market. Acer currently does not have the capacity to capture a
niche market based on the uniqueness of their products (University of Phoenix, 2011). Their
customers are not willing to pay a much higher price for this new product. In general, most
businesses tend to skew a penetration price too high in an attempt to make more money. Based on
Acer's market, it would make sense to consider cost–plus pricing; they would charge their prices
explicitly with reference to average costs plus a percentage profit mark–up. Predatory pricing and
limit pricing would not be appropriate (McConnell–Brue, 2004).
Acer has a degree of control over its prices and a considerable amount of non–price competitions
exists, which ultimately leads to price discrimination (University of Phoenix, 2011). As such, Acer
should focus on attaining and retaining loyal customers. Their non–pricing strategy should be
focused on the development of products that are unique

mkt311 tb chap13 Essay
ch13
Student:
___________________________________________________________________________
1.
Price is the cash expenditure plus taxes that consumers have to pay for a good or service. True False
2.
The key to successful pricing is to match the product with the consumer's perception of value. True
False 3.
Price is the only part of the marketing mix that does not generate costs. True False 4.
If Brandon buys hats for his store for $5 each and sells them for $15 each, he is using a keystoning
pricing strategy. True False 5.
Rarely is the lowest–price product offering the dominant brand in a given market. True False 6.
A demand curve shows the relationship between income and demand. True False ... Show more
content on Helpwriting.net ...
E. value of the consumer's time.
26.
Consumers judge the benefits the product delivers against the __________ necessary to obtain it.
A. monetary cost
B. profit C. variable cost
D. total return
E. sacrifice 27.
Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms
with top–of–the–line machinery that make better quality cabinets, but he does well and has a
constant flow of business. Dean obviously has:
A. figured out how to produce cheap products.
B. priced his products well.
C. reduced his variable costs by investing in fixed costs.

D. avoided monopolistic competition, and is instead in a market with pure competition.
E. learned how to use status quo pricing.
28.
If firms price their products too low, it may:
A. result in lower costs.
B. create a premium pricing effect.
C. increase contribution per unit.
D. result in inelastic demand.
E. signal poor quality.
29.
Gerald has a number of customers for his lawn care service who never question his bill but expect
their lawns to be perfect. These customers do not want low prices, they want:
A. a sales orientation.
B. fixed costs.
C. cross–price discounts.
D. a target return.
E. high value.
30.
Marketers can deliver high value through high or low prices, depending on:
A. profit contribution per unit.
B. the bundle of benefits the product or service delivers.
C. monopolistic competition.
D. target return

Airtel Merger Essay
B. APPLYING PREDATORY PRICING
The newly created firm will have a market share of 27.14% after summing the market of share of
14.5. % for Tigo and 12.6% for Airtel respectively. The combine market shares (27.1%) of the two
firms is lesser than that of MTN with market share of 48.5% .Using the market shares reveals that
MTN will still have more dominance in the market than the newly created firm from the merger.
This provides proof of the fact that the newly created firm would not have much control over the
market in using predatory pricing to drive competitors and potential competitors out of the market.
The merger should be approve as competition in market will be maintained after the merger.
C. APPLYING ANTI COMPETITIVE ISSUES
MONOPOLY ... Show more content on Helpwriting.net ...
The concern of the regulator will be to determine if the merger could raise or reduce the welfare of
consumers. That is if the reduction in cost measured by the lower average cost would be sufficiently
large relative to the rise in price, then the merger would improve welfare of consumers as cost saved
will be greater than deadweight loss. But if the rise in price after the merger is sufficiently large
relative to the reduction in average cost then the merger lowers welfare (deadweight loss).The
antitrust authorities can determine if the merger would enhance welfare or not depending on how
reacts to the merger. The goal of competitors is to determine whether the merged firm will provide
quality or worse services compared to the combined premerger services provided by the firms
engage in the merger. If the quality of services provided by the merged firms falls then competitors
will be better off, since demand for their service is likely to increase. The increase in demand for the
services of competitors induces them to provide more to the market, but on the net the total quality
of service provided in the industry would falls creating higher prices, in that case the merger will not
be challenge by the competitors. The higher price resulting from the merger reduces welfare as
consumer surplus falls. On the other hand if the new firm provides better quality services

Economy
Introduction
The legislation process of Anti–Monopoly Law has been indeed a long journey. The new AML is a
tremendous leap forward for China, bringing China into the modern world of antitrust and
competition law. The law, which aims to prevent dominance of any one company, was first proposed
in 1994. But its pace was slow until 6 years later because of pressure from big state–owned
companies and multinationals that had just started doing business in China. It wasn't until 2001,
when China joined the World Trade Organization, did the process accelerate. In August 2007, the
law was finally passed by the National People's Congress. Although the measure compromised with
state–owned enterprises, which dominate industry, people tend to believe ... Show more content on
Helpwriting.net ...
In addition, market dominance will be presumed to exist in the following cases (although this
presumption can be rebutted by evidence to the contrary): * if the operator has a market share of at
least 50 per cent; * if the joint market share of two operators accounts for at least two–thirds of the
relevant market; or * if the joint market share of three operators accounts for at least three–quarters
of the relevant market. * The monopolistic practice * The definition monopolistic competition is
firms which in effect hold a monopoly over their products, in that the firm is able to influence the
market price of its product by altering the rate of production. Monopolistic competitive firms
produce products that are not perfect substitutes or are at least perceived to be different to all other
brands products. Unlike in perfect competition, the monopolistic competitive firm does not produce
at the lowest possible average total cost. Instead, the firm produces at an inefficient output level,
reaping more in additional revenue than it incurs in additional cost versus the efficient output level.
There are several kinds of monopolistic practice as follow * Dumping can refer to any kind of
predatory pricing. However, the word is now generally used only in the context of international
trade law, where dumping is defined as the act of a manufacturer in one country exporting a product
to another country at a

Predatory Lending in the Housing Industry Essay
The Ethics of Predatory Lending in the Housing Industry
The real estate industry is thriving with approximately sixty–eight percent of all Americans being
homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and
government funded educational opportunities (i.e. the Home Ownership Center of Greater
Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there
are some unethical lending practices that are threatening the housing industry as a whole.
Those involved in the mortgage lending process have some duty to the borrower. They are expected
to perform their specific duties in an ethical manner and ... Show more content on Helpwriting.net ...
Mortgage Insurance Companies: Mortgage insurance companies are generally used if the borrowers
down payment are less than twenty percent of the purchase price of the home. This is called PMI
(Private Mortgage Insurance). The cost of private mortgage insurance is included in a buyer's
monthly payment.
What is happening is that there are some unethical lending practices that are threatening the housing
industry as a whole. The concern involves the practices of some sub–prime lenders. These practices
are considered to be "predatory" on consumers. Sub–prime lenders offer home loans (Equity Loans
& 1st Time Home Purchase Loans) to moderate to lower income families. These clients are
considered to be high credit risk borrowers, also know as B–C–D credit clients. Interest rates and
other loan terms generally cost more than those paid by clients served by prime lenders with better
credit records (A credit clients). Sub–prime borrowers end up paying more simply because the risk
of loan repayment is fundamentally higher than that of a prime market borrower.
These predatory practices include, but are not limited to:
Extremely high interest rates, discount points, closing costs, and broker fees.
Borrowers with inadequate income, receiving loans that they will default

American Airlines Case Study
Introduction
This case study is about competition between American Airlines (AAL) and other airlines, as well as
the way AAL behaved in the face of new entries of low cost carriers (LLC) at AAL's Dallas Fort–
Worth (DFW) hub. In this case study, economy of scope produced by a hub, the use of information
technology (IT) as a competitive advantage, and the use of loyalty program are discussed. AAL's use
of predatory pricing to drive out existing competitors, its reputation for predation, and the arguments
from both sides of the antitrust lawsuits are also studied.
Analysis
Background of American Airlines
American Airlines was founded on April 15, 1926, and grew to become the predominant carrier at
the Dallas–Fort Worth (DFW) International ... Show more content on Helpwriting.net ...
AAL considered them a serious threat to its revenues and decided to counteract the competition
through matching prices and increasing capacity (Herb, 2007). Labaton and Zuckerman (1999)
added that the low–cost carriers failed to sustain the operations and eventually moved away, after
which American resumed its prior marketing strategy of reducing the number of flights and raising
its prices to levels comparable to those before the low–fare competition. Over the period 1994–
1999, AAL have higher profit margins on routes without Southwest Airlines or LCC competition, as
it could raise prices slowly without worrying about competitor reactions.
Economies at the hub. Major airlines acquire and maintain large market shares at their hubs even
with higher prices and higher costs than competitors. For example, AAL has a price 31 percent price
premium in DFW, a 70 percent share of the non–stop passengers in DFW, and a higher cost per
available seat–mile (ASM) due to union contracts. However, they achieve economies of scope and
scale that are not captured in the measures of cost per ASM (Edlin, & Farrell, 2002). Economies of
scope come flight sharing from passengers flying to another destination beyond the hub, such as
from Wichita to Dallas then to Miami.
The Wichita–Dallas flight (known as upline) creates additional traffic and profits on AAL's Dallas–
Miami downline route, and as a result, AAL might sell the Wichita–Dallas at very low

Swot Analysis Of American Airlines
Introduction
American Airlines, Inc. (AA) is a major and the world's largest U.S airline in terms scheduled
passenger–kilometers flown, fleet size, scheduled passenger–kilometers flown, number of
destinations served, number of destinations served and revenue. It's headquarter is within the
Dallas–Fort Worth metroplex in Fort Worth, Texas. American Airlines and its regional partners fly in
wide–ranging domestic and international network with more than 6,700 flights per day. It also flies
to more than 350 destinations and to more than 50 countries. American Airlines was established in
1930 through an amalgamation of more than eighty smaller airlines.
According to American Airlines, it has lost nearly $77 million in 1990 and $165 million in 1991. In
terms of customer's flying, the dollar volume of pleasure travel grew only 8% in the 1989–91 period
compared to 19% for 1987–89. The comparable figures for business travel were a 9% increase for
1989–91 in contrast to 28% growth experiences in 1987–89. In 1992 American Airlines decided to
create a pricing strategy Ultimately, American Airlines purpose for the value pricing was primarily
to increase their market share. This strategy resulted in failure few months later.
Analysis
American airlines was the first airlines to introduce computerized airline reservation system called
SABRE (1960), 'uper Saver' fares (1977) and frequent– flier programs (1981). It was U.S.'s largest
carrier, had a fleet of 622 jet aircraft, flying

Marketing Report on Mountain Dew
Report Of Mountain Dew
Introduction:
Company Description
PepsiCo, Inc. is among the most successful consumer products companies in the world, with 1999
revenues of over $20 billion and 116,000 employees. The company consists of: Frito–Lay Company,
the largest manufacturer and distributor of snack chips; Pepsi–Cola Company, the second largest soft
drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo
brands are among the best known and most respected in the world and are available in about 190
countries and territories. Some of PepsiCo 's brand names are 100 years old, but the corporation is
relatively young. PepsiCo, Inc. was founded in 1965 through the merger of Pepsi–Cola and Frito–
Lay. ... Show more content on Helpwriting.net ...
As of 2007, Mountain Dew was the fourth–best–selling carbonated soft drink in the United States,
behind only Coca–Cola Classic, Pepsi–Cola, and Diet Coke. Diet Mountain Dew ranked ninth in
sales in the same year. In October 2008, it was announced that Pepsi would be redesigning their logo
and re–branding many of their products.
Ingredients
Mountain Dew lists its ingredients as: Carbonated water Sugar Citric acid Sodium benzoate
(preserves freshness) Caffeine (55 mg per 12 oz. [approx 330ml]) Sodium citrate Emulsifiers
Natural Flavors Ascorbic Acid Color (Tartrazine)
Marketing efforts, 2002–2007
Today's target demographic is radically different. The drink is mainly marketed to people in the 16–
18 year old demographic group, creating a connection to activities like extreme sports and to the
video game culture. The name Mountain Dew was first trademarked by two brothers, Barney and
Ally Hartman, who ran a bottling plant in Knoxville, Tennessee.
Market Analysis
Whether you are starting a new business or launching a new product, conducting a marketing
analysis is the first step in determining if there is a need or audience for your idea. Knowing the
market 's needs and how it is currently serviced provides you with key information that is essential
in developing your product/service

Advantages And Objectives Of Indian Drug Industry
Chapter– 2
Pricing Strategies of Indian Drug Industry
2.1 Introduction:
Price is the value which is paid by the buyer to the manufacturer against the products and services. It
is the value of the product mentioned by the seller to the consumers Pricing decisions are one of the
crucial factors that shapes by cost factors, profit margin, and possibility of sales at different price
levels and the competitor's pricing policy as well as with the number of existing competitors in the
market. Pricing is the most critical element of the marketing mix and firms must make strategic
preferences about how to price their product to achieve their business goals in the best possible
manner by considering the demand and supply relationship. Unlike the three ... Show more content
on Helpwriting.net ...
In present times, loss leaders pricing technique has become the popular method of sales promotion
of product. The purpose of making a product "loss leader" is to encourage customers to make further
purchases of profitable goods while they are in the shop. 'Departmental Store' or 'Retailers' used to
adopt this strategy for increasing the foot–fall in store.
Pricing is a key competitive weapon and a significant part of the marketing mix. If a business
reduced its prices than competitors, new customers may be attracted and existing customers may
become more loyal. Hence using a loss leader pricing can help to divert loyal customers. Using a
loss leader is a short–term pricing tactic for any product.
One risk of using a loss leader pricing is that customers can take the opportunity to "bulk–buy". If
the price discount is sufficiently enough, then it makes sense for customers to buy as much as they
can (assuming the product is not perishable) which leads loss for the manufacturer.
2.6.2.4 Psychological

Wal Mart 's Social Responsibility And Consumer Purchasing...
Introduction:
In a fiercely competitive economy, good social reputations are companies' biggest asset. Copious
recent research established direct correlations between companies' social responsibility and
consumer purchasing behaviours.
As consumers have more substitution options, it is easier to boycott unethical companies. In the
recent decade, Wal–Mart has been entangled in a series of legal and ethical battle around the world.
Hiring illegal immigrant worker , refusing to pay overtime fee , discriminating against female
worker , and dumping hazardous waste into community are just a few negative publicities Wal–Mart
had acquired within the last five years. It is estimated that Wal–Mart receives an average of 1607
lawsuits annually. However, despite constant criticisms that would otherwise bankrupt a company,
Wal–Mart's revenue is steadily increasing at an astonishing 7.13 billion USD annually , making it
the top company in the world by sales revenue . This begs the question: "What shields Wal–Mart
from storms of criticisms that would otherwise cripple a business?"
Wal–Mart could not achieve its record revenues without its customers. Since marketing has the most
direct influence on customers, this essay will investigate within the context of the marketing topic of
the Business and Management syllabus. The question "To what extent are Wal–Mart's price and
product effective in counteracting the impacts of negative publicity?" will be explored. Although
researches had

Pricing Between Marketing And Sales Promotion
Introduction
Self–paced training
Introduction to pricing, pricing in relation to sales promotion, pricing strategies, common pricing
mistakes
It takes about 30 minutes to complete the course
Transcript and keyboard shortcuts are available
Course completion confirmation from the SBA
Course Objectives
After completing this course, you will be able to:
Define pricing
Explain how costs affect pricing
Describe pricing as a component of the marketing mix
Identify pricing objectives
Describe pricing strategies in relation to sales promotion
Explain the three general pricing approaches for small businesses
Identify the common pricing mistakes
Recall the legal issues involved in Antitrust, loss leader pricing, and price ... Show more content on
Helpwriting.net ...
Pricing vs. Costing
To determine the price for the product or service, the firm must understand the costs for running the
business. If the price is not enough to recover costs, the cash flow will be negative and the business
will fail.
Costs include: o Property and equipment leases o Loan repayments o Inventory o Utilities o
Financing costs o Salaries/wages/commissions. o Markdowns o Shortages o Damaged merchandise
o Employee discounts o Desired profit
Profit should be added to the list of costs and treated as a fixed cost. Nobody runs a business just to
break even.
Pricing as a Component of the Marketing Mix
Generally, marketing mix denotes the four Ps of marketing:
Product
Price
Place (distribution)
Promotion Before a product is developed, a firm needs to come up with a marketing strategy. This
involves selecting the target market and product positioning. Usually, there has to be a balance

between product quality and price. This way, price plays an important role in the marketing mix.
Pricing will always be determined by these tradeoffs

AP Economics: Predatory Pricing And American Airlines
Anna Zhou
E Period Linsdell
AP Economics: Predatory Pricing and American Airlines
This semester in AP Economics, we learned about different pricing strategies, both legal and illegal,
that companies use. One in particular, is predatory pricing. Predatory pricing is a strategy businesses
use to target competitors and drive them out of the market, along with creating barriers to entry for
new businesses. In America, engaging in predatory pricing can lead to antitrust claims against a
business; however, it would have to be proven that the business is lowering prices with an ulterior
motive of establishing a monopoly and driving competitors out of the market. In May 1999, the U.S.
Department of Justice accused American Airlines of illegally slashing prices below cost and
increasing flights sharply to drive out small competitors, specifically at its Dallas–Fort Worth
location. There were several reasons for why the DOJ sued American Airlines. In the four markets at
Dallas–Fort Worth's American hub, American Airlines had made fare cuts and capacity additions
with the entry of small "low cost" rivals, specifically, Vanguard Airlines, Sun Jet, and Western
Pacific. Through this, the Department of Justice speculated that American Airlines was sacrificing
short run profits to drive out competitors so they could regain the losses after increasing its
monopoly power. ... Show more content on Helpwriting.net ...
However, contenders say that although this could be viewed as predation, it could also be viewed as
simply competition. Airlines should be allowed to cut fares and sell extra seats to match that of other
airlines. The prosecution must first be able to prove intent. Since businesses can reduce prices
simply because costs have fallen, it is difficult to provide concrete evidence of businesses cutting
prices due to predatory

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