Got a tricky question? Receive an answer from students like you! Try us!

Pricing strategies of Amazon - Essay Example

Only on StudentShare
Author : smithamproviden

Summary

Pricing Strategies of Amazon Name: Instructor: Task: Date: Pricing Strategies of Amazon In the business world of corporate entities, varieties of factors have to be considered in order to ensure unrivalled success. Companies and business entities are always formulating ideas and strategies that eventually ensure the success of the products, merchandise or the services that they offer…

Extract of sample
Pricing strategies of Amazon

231). The most important factor to consider is the pricing of a product, as it is from this that the company will be viewed by the other entities in the industry and also potential customers. In achieving this, companies in general consider three main factors in coming up with viable pricing strategies that ensure their overall success. These are in terms of their basis of laying emphasis. There are the cost-based pricing strategies, which focus on a means of determining prices through incorporation of profit essentials in the product (Cryns 2002, p. 120). Moreover, there is the pricing based on customer observation whereby a business entity considers the best price that could fit accordingly to the customer base of that product. In addition, there is the pricing based on competitor substitutes, which considers competitor pricing to come up with prices that would most likely put a business at a better position for proper and advantageous competition. While these are the main pricing criteria that most companies consider prior to formulating a viable strategy, other entities such as Amazon maximize on their potential in regards to formulating their pricing strategies (Wuebker 2008, p. 111). ...
Download paper

Related Essays

Amazon
This means that the company has successfully attracted the future clientele for itself. The young generation will continue using the online retailer throughout its life because they have had a good experience with the company. This is one of the greatest assets of Amazon.The company is also following cost leadership strategy with great success. The shift in the policy came after 2001 as it was the time when company decided that it has gained enough clientele to follow a cost leadership strategy. This strategy is working and it is expected to work in future as well. This is because in future…
12 pages (3012 words)
The Pricing Strategies and Programs of Etisalat
In 1983, the company changed its ownership structure when the United Arab Emirates government took over a 60 percent share of the company, giving it majority ownership, with the other 40 percent of stock offered to the public. Today, this company operates under the brand Etisalat. …
9 pages (2259 words)
Pricing - New Product Development
Analysis of design and technical features of the product are essential part of product development and would be required in price evaluation period. The challenge is to engage with the competitors and meet the market in effective and deliberate way. In the longer run, the aim is to build a relationship with British Petroleum in order to meet the primary objective of market capturing. This will introduce the eco bins in UK market in a good aspect of time and make it available for the new users. In pricing objective, the company should go with market penetration tactics, which would be achieved…
14 pages (3514 words)
Four P's Product: Promotional and Pricing Strategies
Discussion Marketing Mix Following is the perceived marketing mix (Perreault et al, 2010) of KFC. Product As the name suggests the product of KFC is chicken, more especially fried chicken with the secret recipe of Colonel Sanders (Pride & Ferrell, 2010). The recipe is still a trade secret and only two unnamed senior executives of the company have had access to that complete recipe which is written by pencil on a piece of paper and signed by Colonel Sanders. The company has different varieties of chicken and its menu goes on to include “fried chicken, grilled chicken, chicken sandwiches,…
6 pages (1506 words)
Amazon (Kindle Fire)
In order for it to stay at the top in its sales, more needs to be done to obtain competitive advantage that is essential to get rid of any competition in the prospect. Comparing with the rest of the firms, Kind Fire presents a gap of about $300 for a similar commodity, thus, allowing customers to enjoy significant sales from its target markets. The gap exists because the other firms seek to sell their commodities at $499 while Kind Fire sells its commodity at $199. From the recent market results, Kind Fire has hit a sale of five million in the period terminating on December 2011 although…
Product Development and Pricing Strategies
Marketing strategy provides the best opinion to the organization regarding how it can use its resources and skills in the market place so that it can run the business profitably (McDonald, 2007). The marketing strategy is mainly concerned regarding the four P’s and the objective of the organization. Flexibility in the marketing strategy creates a positive influence on the performance of the organization (Pride and Ferrell, 2010). In a competitive economy successful marketing is all about customer focus, positioning and attaining competitive success (Lancaster and Massingham, 2010). Classic…
11 pages (2761 words)
Pricing Strategies of Tiger Airways.
The Tiger Airways is divided into services and brands such as the marketing and customer services which comprise the in flight services, the marketing service and cabin crew (Albers, Auerbach, & Baum, 2005, p. 154). Furthermore, the operational services comprise flight operations, catering, aviation services, and operation planning and control services. The other section of the airline is the commercial service section. …