Larson Inc Strategies for Different Economic Outcomes
- Submitted by: dizzlebd1
- Views: 1009
- Category: Politics: Economics
- Date Submitted: 08/14/2010 01:26 PM
- Pages: 2
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Pricing strategies(economy stays the same)
The recommendations that were made for Larson Inc. in the previous report were made assuming the economy would stay the same. It was decided that going into the future the current cost-plus pricing strategy would need to be adjusted in both the German and American markets. The recommendation for the American market is to grow the market share by installing limit and price leadership pricing. The cost-plus pricing model in Germany can still operate to build profit; “However because of an economic slowdown and difficulty in product differentiation price leadership is key in generating more revenue(University of Phoenix, 2010).
Non Pricing strategies
Excessive barriers in the business and the state of the economy make it very difficult to grow market share without pricing strategies. It has been suggested that offering a more diverse product line would be viable. This transition into offering varied products must be done smoothly and done so in a market that does not contain a lot of barriers and restraints.
Another way for Larson to set itself apart from the competition and spike consume interest would be to partner with a company that sells products that operates solely on batteries. By partnering with another company, batteries can be packaged and distributed with that particular product. This would be an alternative route for Larson to increase revenue (University of Phoenix, 2010)
Product differentiation
Product differentiation can be capitalized upon in both American and German markets. There is less competition in Germany and therefore an opportunity to distinguish Larson as different and superior to its competitors. In America there is an opportunity to produce a battery that has a low cost of maintenance. This will appeal to consumers because most have very little discretionary funds. An eco-friendly battery will appeal to the perpetrators of the green movement and also serve as a key product differentaion.
The recommendations that were made for Larson Inc. in the previous report were made assuming the economy would stay the same. It was decided that going into the future the current cost-plus pricing strategy would need to be adjusted in both the German and American markets. The recommendation for the American market is to grow the market share by installing limit and price leadership pricing. The cost-plus pricing model in Germany can still operate to build profit; “However because of an economic slowdown and difficulty in product differentiation price leadership is key in generating more revenue(University of Phoenix, 2010).
Non Pricing strategies
Excessive barriers in the business and the state of the economy make it very difficult to grow market share without pricing strategies. It has been suggested that offering a more diverse product line would be viable. This transition into offering varied products must be done smoothly and done so in a market that does not contain a lot of barriers and restraints.
Another way for Larson to set itself apart from the competition and spike consume interest would be to partner with a company that sells products that operates solely on batteries. By partnering with another company, batteries can be packaged and distributed with that particular product. This would be an alternative route for Larson to increase revenue (University of Phoenix, 2010)
Product differentiation
Product differentiation can be capitalized upon in both American and German markets. There is less competition in Germany and therefore an opportunity to distinguish Larson as different and superior to its competitors. In America there is an opportunity to produce a battery that has a low cost of maintenance. This will appeal to consumers because most have very little discretionary funds. An eco-friendly battery will appeal to the perpetrators of the green movement and also serve as a key product differentaion.