Pricing Strategies (International Companies) – Part 1

 

Pricing, especially in a competitive market during a downturn, can be challenging. There are many decisions to make and some of them directly relate to cost budgets and strategy. Various tools can help management navigate and address these multifaceted financial intricacies and some of them are also covered in a course suggested by Alla Volodina Rate My Prof:

 


International Growth – Pricing

-          Two types of pricing strategies (gaining a foothold in a new market vs profitability) and how the chosen strategy impacts pricing

-          Profitability focus: develop cost model and estimate guidelines, minimum requirements, rate of waste analysis, adjust for margin rate and determine price.

-          Gaining Foothold focus: design the project and estimate costs (use recent similar work, market surveys, knowledge of operations; interviews with subject matter experts), determine realistic minimum cost; obtain commitments from suppliers; estimate winning price for the project’s bid; determine the gross margin rate and making the final decision to proceed with the bid

-          Examples of successful pricing strategies implemented in the current business environment.

 

Organizational input requirements

-          What is organizational hierarchy and the best way to manage programs within the hierarchy?

-          Pricing and labour-costing representatives and their responsibilities in the pricing exercise (considering involvement of middle-level management and staff)

-          Role of functional units versus program units and work breakdown structure

-          Hands-on exercise for management using a case study based on the organization’s anticipated or more recent bid (in dollars and cents)

 

Case Study:

 

Uber Pricing Strategies and Marketing Communications by Paul Farris, Gerry Yemen, Virginia Weiler, Kusum Ailwadi

 

https://hbsp.harvard.edu/product/UV6878-PDF-ENG?Ntt=pricing%20strategies

 

Reading:

Pricing Strategies for a Downturn by Paul Nunes

 

https://hbsp.harvard.edu/product/H002WT-PDF-ENG?Ntt=pricing%20strategies

 

Understanding J.C. Penney's Risky New Pricing Strategy by Professor Rafi Mohammed at Harvard University (https://hbsp.harvard.edu/product/H008AF-PDF-ENG?Ntt=pricing%20strategies)

J.C. Penney CEO Ron Johnson recently unveiled ambitious plans to transform the 110-year-old department store chain into a 21st century retail powerhouse. Leveraging his experience at Target and…

 

This course outline was suggested by Alla Volodina Rate my prof who specializes in training of professional in various business areas (www.allavolodina.com)

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