Determine Pricing Strategy to Meet Organizational Goals

These obstacles are known as barriers to entry. There are generally two types of barriers to entry that exist, these are natural and artificial. Natural barriers can be exploited by the major firms and the artificial barriers can be used belligerently to stop other firms from joining the market.

Many utilities are monopolies by having the entire market share in certain areas. With deregulation of these utilities, the market becomes open to competition for market share to begin. In terms of regulation of monopoly, the government attempts to prevent operations that are against the public interest, call anti-competitive practices. Likewise, oligopoly is a market condition where there are minimal distributors that have a major influence on prices and other market factors. This causes market failure, especially if evidence of collusive behavior by dominant businesses is found.

For example, If you are selling a product that is a normal good with a high rate of competition in the market, raising the price could have negative effects on overall profits because users will simply find another substitute somewhere. Charles stated that market separation may come into play when firms realize there are differing elasticity curves for different consumers of the same product. Firms can maximize profits by evaluating consumer segments within a single market. If the firm notices different demand elasticity for different segments it may opt to engage in price discrimination to maximize profits. Charles gave Microsoft Office as an example; the same software is offered to students, casual users and business users at different price

30) The introduction of a new product to the market using market-penetration pricing is most likely to be successful when _____________.

Factors that can limit the threat of new entrants are known as barriers to entry. In this case barriers to entry are low because: there is no government intervention to prevent businesses from entering the industry, resources are abundant, and customers’ switching costs are low as well as fixed costs to start this type of business.

B. Large number of firms, price maker, free entry and exit, and a differentiated product

The strategy was to offer low price in the market which led to setting the lower prices. Niche marketing was used in setting the prices to be offered for the different market segments. Products with market target specifications are availed. The low-cost strategy was applied to set up the budget of the firm. It would use the least possible production budget to cut the price of products. The combination of strategies assists in maintaining a key position in a market. Compete effectively with opponents.

* Acquire higher amount of shelf space to distinguish itself away from the competition, this can be done by utilizing promotional allowances to create discounts.

D. defining some broad product-markets where you may be able to operate profitably 17) The product life cycle

The benefit of this may be choosing a way of attracting more market such as offering discounts at a particular quantity bought. There may be also a drawback as the discounts may not automatically attract customers hence leading to a loss.

Monopoly is a firm that is the sole seller of a product without close substitutes. A monopoly is caused by barriers to entry which means that there is only one seller in the market and no other firm can enter or compete with that sole seller. There are three main sources to barrier to entry, monopoly resources: a key resource required for production is owned by a single firm. Government regulation, which is the government gives a single firm the exclusive right to produce some good or service. Also the production process, which is a single firm can produce output at a lower cost than a large number of firms.

Within any industry the fiscal or economic goals are to increase revenue; determine the fixed and variable costs for the business; and determine how to maximize profit. In order to reach those goals an organization needs to establish the pricing structure, product differentiation, and how to minimize the costs for the product. In this proposal will layout the strategies to reach those goals in order to make a more economic successful organization.

Swing Manufacturing and Steady Manufacturing both operate in the widget industry, but with radically different cost structures. Swing is a capital-intensive, automated manufacturer, while Steady is a labor-intensive "job-shop." Monthly operating data are as follows:

Firstly, it is highly agreed that offers and discounts are essential to promote the products for a company. Especially, it is believed to be more applicable for the new start-up. For instance, Giardano watches could always be purchased at a low price. To increase the number of sales and

Barriers to Entry. In general, a monopoly by one company possesses the power to create barriers to entry for competing companies in a