The prices are set by the organizations according to demand and supply in the market. The price is set to the extent which the market would bear and make reasonable profits. For example, Apple always produces premier products and charges premium prices from the customers. The company ensures high quality provided to the customers. The penetration pricing strategy is used by the companies to enter into the competitive and existing market. The aim of the strategy is to set low price early to attract huge customers. After a period, the company will then focus on providing high-quality products and services with the aim of retaining those customers. Price skimming strategy is sometimes used by the companies when they introduce new products in the market. The main aim of price skimming is to set the price at a high rate initially to recover the production and other costs.
Brand management is the marketing function that uses different techniques and strategies to increase the value of the product line. An effective brand management assists the companies to set a reasonable price for the products and increase loyal customers. The implementation of a strategic plan enables the companies to maintain a brand position in the market and achieve the vision of the company (Sanders, 2012). For example, the companies such as Intel and Microsoft have implemented different strategies to attract a large number of customers. The companies have introduced innovative and high-quality products in the market. Intel introduced Intel Core processor, and Microsoft introduced Microsoft Windows suite that enhanced their market share. Both the companies have built their brand reputation in the market.
Strategies to leverage power in the upstream
The selection of a supplier is the process by the organizations determines to analyse and contract with the suppliers. The process of supplier selection requires a huge amount of financial resources. The organizations expect benefits from contracting with the suppliers. DTG has focused on selecting the most appropriate supplier to carry out its business activities and supplying products to the customers. DTG Digital is the most profitable company that produces amazing and high-quality prints. The company has selected UL and NU as suppliers to supply its products to different locations. The management of the company has maintained all its processes to supply its products to their customers.
The self-enforcing contract is an agreement between two parties which is enforced by both the parties. The agreement is carried out till it provided maximum benefits to both the parties. NS&I outsourced its operations for the first time to the Siemens business services, and in July 2011, Atos subsequently acquired the company (Halvey and Melby, 2007). The contract of outsourcing is based on the strategies, deal with the impact of inflation and decreasing the core operating costs.
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