The Process of Creating a Competitive Brand - Essay Example

The telecommunication industry is predominantly becoming homogenous, and firms in the industry are focusing on competing on a technology basis over and above relatively differentiating their products and services.

Consumers are rational; they maximize their welfare at the minimum cost possible (Pride & Ferrell 329). On the other hand, firms seek to maximize profitability by minimizing operational costs as much as possible. The link between these two concepts gives rise to business strategies for successful and profitable business operations. The fact that pricing is a critical factor that influences the overall performance of a business enterprise cannot be refuted. However, competing on a price basis is a critical decision to make in business. Markets are made up of different market structures, namely: perfect competition, monopoly, monopolistic competition, and oligopoly (Pride & Ferrell 450). Pricing strategies work differently across these market models, but the common denominator is that product and service quality must be accounted for. Therefore, a pricing strategy that is backed up by product quality is more likely to satisfy consumers.